US stocks reversed their earlier gains to close mixed on Wednesday, after the Federal Reserve sent surprisingly hawkish indications of rate hikes this year to tame red-hot inflation.
The S&P 500 jumped more than 500 points immediately after the policy statement was released, and remained steep.
In the press conference that followed, Chair Powell acknowledged that inflation may stay high for longer than expected and that a rate hike in every Fed meeting is not off the table. The stock market turned negative, though the stock market finished flat.
The US indexes stood after 4:00 pm. The close is on Wednesday.
The yield on the 10-year Treasury increased from Tuesday to Wednesday. Bond yields move with prices.
The outcome of the meeting fell short in providing the needed guidance, according to Charlie Ripley, senior investment strategist for Allianz Investment Management.
In March, the central bank could raise rates by a quarter-point, followed by three or more for the rest of the year.
Pride said in a note Wednesday that the uncertainty of the inflation outlook could affect the path of rates.
There was a lot of uncertainty this week about the Fed's determination to curb inflation. The central bank has a balance sheet of nearly $9 trillion.
There is a cascade of earnings reports from mega-cap companies due this week. After the closing bell, Apple will post results.
Outside the US, investors are keeping an eye on the situation in Russia and Ukraine, which is affecting different commodities.
The price of West Texas Intermediate crude oil rose as much as 1.29%. The price of oil jumped as much as 1.29% to $89.34 per barrel.
The price of gold was $1,818.42 per ounce.
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