Nasdaq Ends At Another Record; Dow, S&P 500 Slip

Wall Street stocks finished mostly lower on Wednesday following a volatile session as the Federal Reserve vowed to keep interest rates low due to the shaky economic outlook.

The Nasdaq finished up 0.7 percent at 10,020, its third straight record close and the first time above 10,000 points.

But the Dow Jones tumbled 1.0 percent to 26,989, while the S&P 500 shed 0.5 percent to 3,190.

At the close of its two-day policy-setting meeting, the Fed confirmed it will keep the benchmark interest rate at zero until the recovery is underway, while projecting the economy would contract by 6.5 percent this year and unemployment would fall to 9.3 percent from its current 13.3 percent.

Fed Chair Jerome Powell said Friday's Labour Department data showing an unexpected drop in unemployment was a "welcome surprise," but cautioned that "it's a long road" back after more than 20 million workers were displaced by coronavirus shutdowns.

Stocks rose shortly after the Fed released its statement, which showed most central bank policymakers expect the key rate to stay the same through 2022 at least.

However, the Dow and S&P 500 tumbled back into negative territory during Powell's press conference.

Powell's tone was "practical," said Briefing.com analyst Patrick O'Hare.

"He's very cognisant of the fact that the recovery might not unfold as quickly as the stock market seems to think it will," O'Hare said.

Sectors with big drops included energy and banking, which are dependent on a cyclical economic upturn. Hotels, retailers and airlines also fell.

But several prominent technology companies had winning sessions, including Apple, which gained 2.6 percent, and Tesla, which rocketed 9.0 percent higher and finished above US$1,000 for the first time. (AFP)