- US
stocks briefly spiked into positive territory on Wednesday before paring gains when the Federal Reserve forecast it would keep interest rates near zero through 2022 and continue economic stimulus. - The tech-heavy
Nasdaq added to a record close on Tuesday, and theS&P 500 and Dow Jones industrial average whiplashed in the afternoon. - Investors looked past a report from the OECD saying that the coronavirus pandemic had triggered the worst recession in nearly a century.
- Read more on Business Insider.
US stocks whiplashed in a volatile trading session Wednesday after the Federal Reserve signaled that it will continue its efforts to provide economic stimulus to aid the US recovery from the coronavirus pandemic.
The Fed also forecast that it would keep interest rates near zero through 2022.
"What is surprising is that on the heels of some v-shape recovery indicators, the Fed sees structural fragility in the US economy," said Mike Loewengart, managing director of investment strategy at E-trade. "Powell has made it clear that he will continue to rely on his full range of tools to keep the US economy healthy as jobs and inflation continue to come under historic pressure.
Here's where US indexes stood at 2:45 p.m. ET on Wednesday:
- S&P 500: 3,199.01, up 0.1%
- Dow Jones industrial average: 27,206.99, down 0.24% (65 points)
- Nasdaq composite: 10,031.18, up 0.76%
The Fed's cautious tone suggests that the US economy is not yet out of the woods, but that the central bank will likely take whatever means necessary to keep key metrics afloat, said Loewengart.
The Fed meeting overshadowed a dismal report from the Organization for Economic Cooperation and Development that said the coronavirus pandemic triggered the worst global recession in nearly a century. The organization said it expected global economic output to slump by 6% this year and take a bigger hit if there's a second wave of COVID-19 infections.
The tech-heavy Nasdaq, which closed at a record high on Tuesday, continued to gain. The increase was led by the so-called FAANG cohort, consisting of Facebook, Apple, Amazon, Netflix, and Google's parent, Alphabet. The heavily weighted group has outperformed the broader market since the late-March market bottom.
Shares of Tesla also surged to a new all-time high, surpassing $1,000 for the first time ever Wednesday, fueled by an analyst upgrade, Chinese car sales, and reports that CEO Elon Musk is pushing the company to ramp up production of its semi-truck.
Crude oil prices declined ahead of weekly data showing the size of US stockpiles from the Department of Energy. West Texas Intermediate crude fell as much as 3.1%, to $37.73 per barrel. Brent crude, the international benchmark, slipped 2.5%, to $40.14 per barrel, at intraday lows.