US stocks mixed; Federal Reserve meeting in the spotlight

Investing.com--U.S. stocks traded in a mixed fashion Thursday, as investors continued to digest Donald Trump winning the 2024 presidential election, ahead of the latest policy-setting meeting by the Federal Reserve. 

At 09:35 ET (14:35 GMT), the Dow Jones Industrial Average fell 85 points, or 0.2%, the S&P 500 index gained 22 points, or 0.4%, and the NASDAQ Composite rose 135 points, or 0.7%.

The main indices continued to push higher Thursday, after closing at record highs the previous session, as investors cheered the prospect of lower corporate taxes under Trump, while the possibility of a Republican sweep in Congress presented a clear path for major policy changes. Federal Reserve in focus 

Attention now turns to the conclusion of the latest Fed meeting later in the session. 

Markets are broadly pricing in a quarter-point borrowing cost reduction in the benchmark fed funds rate, which currently stands at a range of 4.75% to 5%.

In September, the Fed slashed rates by an outsized 50 basis points in a bid to provide support to labor demand during a time of waning inflationary pressures.

Investors will be keen to hear if Fed Chair Jerome Powell will comment on the path ahead for rates this year. Futures contracts tied to the Fed's policy rate are also factoring in an additional drawdown in December, although these wagers were somewhat dented following Trump's victory.

The bank’s outlook on interest rates remained a point of uncertainty, especially as recent data showed stickiness in inflation. Warner Bros soars on surprise profit 

There are more quarterly earnings to digest Thursday.

Moderna (NASDAQ:MRNA ) stock soared over 8% after the drugmaker reported a surprise net income in the third quarter and announced changes at its leadership team, looking to address issues stemming from fading sales of its COVID-19 vaccine since a pandemic-era boom in demand.

Warner Bros Discovery (NASDAQ:WBD ) stock rose over 10% after the mass media giant reported a surprise third-quarter profit, but missed revenue estimates as its studio business took a hit from fewer blockbuster releases.

Lyft (NASDAQ:LYFT ) stock soared 25% after the ride-hailing company posted sales above expectations, upbeat guidance, and unveiled a new partnership for self-driving cars.

Numbers from Block (NYSE:SQ ), Pinterest (NYSE:PINS ) and Rivian Automotive (NASDAQ:RIVN ) due after the close. Crude continues to weaken 

Oil prices slipped lower Thursday, adding to the previous season's lows as traders digested the ramifications of a Donald Trump presidency amid hopes for more stimulus from top importer China. 

By 09:35 ET, the Brent contract slipped 0.4% to $74.61 per barrel, while U.S. crude futures (WTI) traded 0.5% lower at $71.33 per barrel.

The crude benchmarks had weakened during the previous session, weighed by a surge in the dollar as well as a bigger-than-expected build in U.S. inventories .

However, traders are now beginning to consider the potential for a Trump presidency squeezing oil supply from Iran and Venezuela, while his policies have tended to be pro-business, which likely supports overall economic growth and increases demand for fuel. 

Additionally, China’s National People’s Congress is widely expected to outline plans for more fiscal spending in the coming months to boost economic growth.

Hurricane Rafael is building in intensity as it moves through the Gulf of Mexico, shutting in a significant portion of the region’s crude oil production.

(Ambar Warrick contributed to this article.)

 

Source: Investing.com