Stocks Rise After Fed Rules Out 2019 Rate Hikes

Stocks pared earlier losses on Wednesday after the Federal Reserve slashed its rate-hike outlook for 2019 to zero.

The S&P 500 turned positive to trade just above breakeven while the Nasdaq Composite traded 0.3 percent higher. The Dow Jones Industrial Average was down 30 points after sliding about 200 points earlier in the day.

The Fed brought down its 2019 rate-hike to no increases down from two hikes. The central bank also indicated it intends to end the reduction of its massive $4.2 trillion balance sheet by September.

Fed Chair Jerome Powell is scheduled to speak at 2:30 p.m. ET. Stocks are up more than 12 percent this year in large part because the Fed said in January it would be “patient” in raising rates this year.

Equities were down earlier in the day after President Donald Trump said U.S. tariffs on Chinese goods could stay on for a long period of time.

“We’re not talking about removing [tariffs], we’re talking about leaving them for a substantial period of time because we have to make sure that if we do the deal with China that China lives by the deal,” Trump told reporters. His comments confused some traders, however, as Trump also said a deal is “coming along nicely.”

via CNBC