Stock Market Update

[BRIEFING.COM] The major averages have dipped since the FOMC announced that the fed funds rate will remain unchanged, with the Nasdaq Composite down 0.3%, the S&P 500 down 0.4%, and the DJIA down 0.7%.

In the press conference section of the meeting, Fed Chair Powell said the two dissenters (Waller and Bowman) gave clear, thoughtful arguments, but the majority still favored keeping policy modestly restrictive.

Powell added that there is scope to reduce rates once conditions are met, but large cuts are unlikely unless the labor market weakens significantly. 

The probability for a 25-basis point rate cut at the September meeting has fallen to 52.5%, nearly an 11% decline since yesterday, sending equity markets into a sell-off.

Selling activity has picked up recently, sending the financials (-0.3%) and health care (-0.1%) sectors into negative territory after spending most of the session in positive territory.

Breadth figures have declined, with decliners outpacing advancers by a nearly 2-to-1 ratio on the NYSE, though it is a slim margin of just a few dozen names on the Nasdaq.