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Stocks close mixed after Fed pauses rates and hints at more hikes to come

15 June 2023 04:24 (UTC +04:00)

Stocks closed mixed on Wednesday, paring back earlier losses after a volatile trading session jolted by the Federal Reserve's signal that it could continue hiking rates this year after June's pause, APA reports citing CNN.

Fed policymakers on Wednesday voted unanimously to hold rates steady, matching market expectations. But the central bank signaled that it could take at least one more rate hike this year to tame inflation, sending stocks lower.

Future hikes depend on what upcoming economic data shows: The job market remains hot, and while inflation has cooled somewhat, it remains above the Fed's 2% target, which Fed Chair Jerome Powell mentioned on Wednesday.

Meanwhile, shares of UnitedHealth fell 6.4% on Wednesday after the company warned seniors are catching up on procedures delayed during the height of the Covid pandemic, which will likely lead to higher medical costs.

Gold prices moved higher as investors searched for havens in the face of possible higher rates.

Tech stocks also rose. Apple shares gained 0.3% to $183.95, reaching a record high.

Nvidia rose 4.8%, Micron increased 1.8% and Microsoft added 0.9%.

The Dow fell 231 points, or 0.7%.

The S&P 500 slipped 0.08%.

The Nasdaq Composite rose 0.4%.