“Information received since the Federal Open Market Committee met in October indicates that the labor market remains strong and that economic activity has been rising at a moderate rate,” the central bank said in a statement. “Job gains have been solid, on average, in recent months, and the unemployment rate has remained low.”
“The FOMC decision was as expected overall — the policy rate was unchanged and the statement reflected the committee’s decision to ‘move on’ past the ‘uncertainties’ (the word was in fact dropped) created by the trade war,” said Ian Lyngen, BMO Capital Market’s head of US rates strategy. “This was a telling change given there is still no clarity on the trade front.”
The Fed’s decision came hours after government data showed consumer-price inflation rose 0.3% last month, ahead of consensus estimate of 0.2%, according to Econoday. Annually, the measure rose 2.1%, above the Street’s view for 2%.
Tech shares added 0.7%, pulled higher by Skyworks Solutions’ (SWKS) 4.7% rise and Applied Materials (AMAT) 4.3% gain. Micron Technology (MU) and Western Digital (WDC) advanced 3.8% and 3.7%, respectively.
Materials shares also rose 0.7%, led higher by Freeport-McMoRan’s (FCX) 4.6% gain. Newmont Goldcorp (NEM) added 2.3%, and Martin Marietta Materials (MLM) advanced 1.3%.
United Technologies (UTX) rose 1.3%, helping to pull industrials up nearly 0.6%. CSX (CSX) gained 1.9%, and FedEx (FDX) added 1.3%.
Financials shed more than 0.2%. Wells Fargo (WFC) retreated 1%, and Progressive (PGR) fell 2.3%. Allstate (ALL) slipped 1%.
In corporate news, Children’s Place (PLCE) sank more than 23% after the children’s apparel retailer cut its full-year guidance and warned of weaker-than-expected mall traffic in the current quarter. American Eagle Outfitters (AEO) dropped 6.6% after the fashion retailer said markdowns have continued into the holiday quarter.
The Dow Jones Industrial Average ended more than 0.1% higher while the Standard & Poor’s 500 gained almost 0.3%. The Nasdaq Composite added more than 0.4%.