The Dow Jones Industrial Average rose 0.1% at 2 p.m. ET after the Fed raised rates by 25 basis points. The target rate is now 5.25%-5.50%.
In its news release, the Fed stated that “the U.S. banking system is sound and resilient. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The Committee remains highly attentive to inflation risks.”
The S&P 500 fell 0.2%, while the Nasdaq lagged with a 0.4% loss at the hour.
Among sectors, communication services rose, while technology fell.
Volume was higher on the NYSE, but lower on the Nasdaq compared to the same time on Tuesday.
The small cap Russell 2000 bucked the trend and gained 0.4%.
Meanwhile, the Innovator IBD 50 (FFTY) fell 0.7%
Crude oil fell nearly 1% to $78.90 a barrel.
The yield on the benchmark 10-year Treasury note fell 2 basis points to 3.89%.
Dow Jones Stocks
Microsoft (MSFT) fell after earnings as the software giant gave a lower sales outlook while also signaling that more capital spending will be needed for its artificial intelligence venture. MSFT stock is testing support at its 50-day moving average.
Boeing (BA) broke out from a flat base after earnings. Shares are in a buy zone from a 223.91 entry.
Stocks Moving Today
Shares of Alphabet (GOOGL) gapped up after earnings in the stock market today. GOOGL stock is also in a buy zone.
Texas Instruments (TXN) fell to test its 50-day line after the company gave a weak outlook for the current quarter.
Meta Platforms (META), United Rentals (URI), Chipotle Mexican Grill (CMG) and ServiceNow (NOW) will report after market close. URI stock is in a cup with handle with a buy point of 471.82, according to IBD MarketSmith.
META is on IBD Leaderboard.
Tesla (TSLA) fell on Wednesday. Seven leading automobile companies, BMW (BMWYY), General Motors (GM), Honda (HMC) and others are eyeing a joint venture to challenge the EV leader by creating a charging network with at least 30,000 chargers.
Spotify (SPOT) rose after Deutsche Bank upgraded the stock to buy from hold with a price target of $180. Shares are below their 50-day line.
Target (TGT) pared early losses in afternoon trading after analysts at Raymond James cut their rating to market perform from strong buy.
ADRs of Silicon Motion (SIMO) surged over 75% after MaxLinear (MXL) got approval to acquire the data storage company.
New home sales fell to 697,000 in June from May’s revised 715,000.
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