Wall Street’s major indices opened flat on Thursday as investors did not find new inputs from Federal Reserve Chair Jerome Powell on Fed policy.
At the opening bell, the Dow Jones Industrial Average inched up 20.5 points, or 0.04%, to 46,622.31. The S&P 500 added 6.8 points, or 0.10%, to 6,760.50, while the Nasdaq Composite edged higher by 2.0 points, or 0.01%, to 23,045.33.
US stocks edged lower on Thursday, pausing their recent gains since the government shutdown began on October 1.
The closure has postponed key economic reports on inflation and employment, leaving investors with limited fresh data to guide sentiment.
“Even the most bullish markets take a break sometimes,” said Steve Sosnick of Interactive Brokers to AFP
Around 25 minutes into trading, the Dow Jones Industrial Average slipped 0.3% to 46,481.01. The S&P 500 eased 0.2% to 6,741.66, while the tech-heavy Nasdaq Composite fell 0.3% to 22,985.65. Both the S&P 500 and Nasdaq had closed at record highs on Wednesday.
“There’s not a lot of fresh news this morning, no real catalysts,” Sosnick added to AFP. “Without economic reports, the market’s usual rhythm has been disrupted a bit.”
Among individual movers, Delta Air Lines surged 6.2% after reporting stronger earnings and projecting solid travel demand, noting that the shutdown has had little impact on bookings. PepsiCo rose 1.3% following better-than-expected quarterly results, citing “improved momentum” in its North American beverages segment.
Meanwhile, there were no indications or clues regarding monetary policy in Powell’s recent remarks on October 8. Powell acknowledged the changed economic landscape since the last rate cut on September 17, including the ongoing U.S. government shutdown that has delayed key economic data releases.
Markets largely expect further interest rate cuts later this year to stimulate the economy amid slowing job growth and inflation that remains above the Fed’s 2% target. Powell and the Fed remain cautious, balancing inflation risks with the need to support employment, with the possibility of pausing rate cuts if economic data does not deteriorate before the next FOMC meeting scheduled for late October.