Dow closes flat; Bank stocks gain after Fed decision
The June rate hike expectation from the Federal Reserve upped the banks’ stocks in the US markets on Wednesday.
The ETF that tracks banking stocks, SPDR S&P Bank ETF (KBE) gained 0.75% on Wednesday, outperforming the broader markets.
Dow Jones Industrial Average (DJIA) closed marginally in green while S&P 500 fell 0.14%.
Mcdonald’s contributed most to the DJIA.
Nasdaq closed down by 0.37%.
The US Fed concluded its policy meet on Wednesday afternoon by providing a positive assessment of the US economy. The rates were kept unchanged as widely expected by the markets.
However, according to some analysts, the market expectation for a rate hike in June jumped to 75% from 60%.
The ISM non-manufacturing data was released on Wednesday and showed a reading of 57.5 whereas the final Markit services PMI reading for April hit 53.1.