FOMC rally faded on Thursday as healthcare, energy weigh.
US stocks edged lower on Thursday, weighed down by healthcare and energy companies the day after the Federal Open Market Committee (FOMC) voted to raise interest rates.
The S&P 500 Index (NYSEARCA:SPY) declined 0.2% to settle at 2,381.38, with most sectors finishing lower.
The Dow Jones Industrial Average (NYSEARCA:DIA) fell 0.1% to close at 20,934.55. Meanwhile, the technology-heavy Nasdaq Composite Index (NYSEARC:QQQ) pared losses to finish flat at 5,900.76.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) edged lower on Thursday after a bigger reversal the previous session. The VIX settled down 3.6% at 11.21 on a scale of 1-100 where 20 represents the historical average.
Bullish bets rose on Wednesday after the FOMC voted to raise the federal funds rate by a quarter point. By Thursday, that optimism had faded as investors tracked sharp declines in health and energy stocks.
The S&P 500’s healthcare index fell 0.9%, as biotech and pharmaceutical companies languished. Meanwhile, materials shares declined 0.6% and energy fell by a similar amount.
In commodities, oil prices drifted lower on Thursday after staging a solid recovery the previous day. Nymex WTI crude declined 0.3% to $48.71 a barrel on the New York Mercantile Exchange. Brent crude, the international benchmark, edged down 0.1% to $51.74 a barrel.
The Final Word: The Federal Reserve is expected to raise interest rates two more times this year, reflecting optimism in the domestic recovery. However, the Fed is at odds with President Trump over the country’s growth potential. The central bank expects GDP growth of around 2% over the next two years. Trump expects to double that through a combination of fiscal stimulus, deregulation and tax cuts.