- The Dow, S&P 500, and Nasdaq all crept to a dull session ahead of the Federal Reserve’s interest rate decision and policy statement release.
- Third-quarter GDP beat estimates, but growth still slowed to 1.9%.
- The US economy will face severe pressure if consumer data begins to falter.
The Dow traded with little conviction on Wednesday following the release of a new batch of data which confirmed – contrary to President Trump’s frequent claims – that the US economy is not the greatest in history.
In fact, the country’s longest-ever economic expansion is grinding toward slower and slower growth, sparking warnings that a contraction waits on the horizon.
Dow, S&P 500, and Nasdaq All Creep Sideways
Wall Street’s major indices remained little changed during the morning session, continuing the trend from a hesitant futures session.
The Dow Jones Industrial Average fluctuated around its previous close, falling 1.74 points or 0.01% to 27,069.68.
The Dow traded near its previous-day close on Wednesday. | Source: Yahoo Finance
The S&P 500 edged 0.29 points or 0.01% higher to 3,037.13.
The Nasdaq also crawled toward a slight gain, adding 3.75 points or 0.05% to trade at 8,280.61
Gold slogged to a 0.17% increase, which raised the price of the yellow metal to $1,493.20, while oil dipped 0.18% to $55.44.
US Economic Growth Continues to Slow
The stock market is on edge ahead of the Federal Reserve’s interest rate decision this afternoon, but even more important than that – investors and economists overwhelmingly expect a rate cut – is what the central bank signals about future policy decisions.
Chair Jerome Powell has said the Fed desires to “sustain this expansion,” but what measures the bank believes are sufficient to accomplish that policy goal all depends on the FOMC’s reading of the US economy,