© Reuters.
Investing.com – US stocks were mostly lower ahead of the Federal Reserve’s latest interest rate decision.
At 9:39 a.m. ET (13:39 GMT), it was down 124 points, or 0.4%, while it was flat and down 2%.
The new data supports the case for a pause in interest rate hikes. The Federal Reserve will announce its decision this afternoon, followed by a press conference by Chairman Jerome Powell.
After cooler-than-expected growth on a Tuesday in May, today’s producer price index also came in cooler-than-expected. It fell 0.3% for the month compared to a 0.2% rise in April. Analysts had expected a decline of 0.1%.
It is expected to leave interest rates steady at a range of 5% to 5.25% after 10 consecutive rate increases since March 2022. Futures traders see a greater than 50% chance that the Fed will resume interest rate increases in July with a quarter of a percentage point hike.
The prospect of a stall in interest rate hikes has sent stocks higher in recent weeks, pushing the technology sector higher and the S&P 500 and Nasdaq to highs not seen in 14 months. The economy has shown resilience, and some economists are working to reduce the odds of a recession in the next 12 months.
Investors will look to the Fed’s so-called point forecasts for clues about how policymakers view the next few months in terms of unemployment, inflation and economic output.
In individual stocks on Wednesday, UnitedHealth Group Incorporated (NYSE: ) fell 6.8% after the health insurer said it saw a jump in medical costs in the second quarter as more seniors seek procedures they have delayed during the pandemic.
That news sent shares of other health companies lower, including CVS Health Corp. (NYSE:) and Humana Inc. (NYSE:).
Shares of Advanced Micro Devices, Inc. rose. (NASDAQ:) increased by more than 1% after Reuters reported that Amazon Web Services was considering using its own artificial intelligence chips.
Oil rose. It increased 1.2 percent to $70.22 a barrel, while it rose 1.2 percent to $75.25 a barrel. It rose 0.6% to $1,970.