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Wall Street Remains Mixed after Fed Announcement

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Dec 16 Reuters Wall Street remained mixed on Wednesday, with the Nasdaq hitting a record high as investors awaited a potential fiscal economic stimulus package and after the Federal Reserve repeated a pledge to keep its benchmark interest rate near zero.

The SP 500 trimmed gains after the Fed promised to keep funneling cash into financial markets to fight the recession, even as policymakers outlook for next year improved following initial rollout of a coronavirus vaccine.

I dont think theres anything in there that changes their accommodative stance. … The markets reaction is relatively subdued, said Randy Frederick, vice president of trading and derivatives for Charles Schwab.

Frederick said investors are more focused on fiscal stimulus than the Fed statement following its twoday meeting.

The expectations for stimulus are built in, so if we dont get one that would be a much more substantially negative reaction that if we get one, which would be very modestly positive, he said.

Gains in tech stocks, many of which have benefited from changes in consumer habits because of the pandemic, pushed the Nasdaq to a record high before it trimmed its gains. Microsoft surged over 2.

Investor sentiment has oscillated in recent sessions between optimism about the early distribution of a COVID19 vaccine and worries about record infection rates in the United States. Despite the pandemic, the SP 500 has climbed over 14 in 2020.

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