The US stock markets showed mixed results on Wednesday. By the close in New York, the Dow Jones calculated at 48,862 points, marking a 0.6 percent decline from the previous trading day. Shortly before that, the broader S&P 500 was slightly down, calculating at approximately 7,136 points, while the technology-focused Nasdaq 100 reached around 27,187 points, up 0.6 percent.
Meanwhile, the US Federal Reserve kept its main interest rate unchanged during its meeting on Wednesday. The decision was as divided as the recent deliberations of the Open Market Committee, which previously met in 1992. The committee majority statement noted that future adjustments in scope and timing would be carefully assessed based on incoming data, evolving prospects, and the overall risk profile. However, three members dissented from the phrasing, believing it leaned too heavily toward an easing stance. One central banker argued that the committee was too slow to implement any loosening measures, instead advocating for an immediate rate cut.
In related political news, the Senate committee responsible for financial matters approved Donald Trump’s candidate for the successor role to Fed Chair Jerome Powell. This means that Kevin Warsh could become the new Fed Chair in mid-May, pending only final approval from the full Senate. Powell himself stated that he intends to remain a governor on the central bank’s board, saying he sees no alternative but to stay given the series of legal challenges targeting the Federal Reserve. “These legal steps taken by the government are unprecedented in our 113-year history” Powell stated. “I fear these attacks could shake the institution and endanger what truly matters to the public: the ability to conduct monetary policy, free from political considerations”.
Turning to commodities and currencies, crude oil prices rose sharply. The North Sea Brent blend cost $119.80 per barrel late Wednesday, representing a 7.6 percent increase compared to the close of the previous day. This surge follows reports suggesting that US President Donald Trump may find it possible to extend the Iran blockade for several months.
The Eurozone currency was weaker by late Wednesday, with the Euro priced at $1.1677, which meant the dollar exchanged for 0.8564 Euros. Gold prices declined noticeably; a fine ounce traded at $4,546 in the evening, a 1.1 percent drop. This equated to a price of 125.17 Euros per gram.