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Wall Street flat after Fed's bearish outlook

Wall Street flat after Fed's bearish outlook

U.S. stocks pared gains Wednesday after the Federal Reserve downgraded its U.S. economic growth forecast for this year and hinted at new stimulus measures.
The Dow Jones Industrial Average of 30 blue-chip stocks gained 3.70 points (0.04 percent) to 10,366.72, clinching a seven-day positive streak.
The tech-heavy Nasdaq composite index climbed 7.81 points (0.35 percent) to 2,249.84 while the broad-market S&P 500 index lost 0.17 point (0.02 percent) to 1,095.17.
The market was up in early trades as investors shrugged off weak retail sales and focused on a positive start to the second-quarter earnings season.
But stocks pared gains after the Federal Reserve published the minutes of its rate-setting body's June 22-23 meeting.
The minutes showed central bankers now expect U.S. growth to slow to 3.0-3.5 percent this year, well down from previous estimates.
Noting that the economic recovery continued at a "moderate pace," members of the Federal Open Market Committee said a worsening outlook should prompt debate over further stimulus.
"The release of the minutes... forced the bulls to pump their brakes," said analyst Elizabeth Harrow of Schaeffer's Investment Research.


Updated : 2021-05-11 07:24 GMT+08:00