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US markets made mostly a lower closing, as Fed keeps rate unchanged

04 May 2017 Evaluate

The US markets extending the lackluster performance made a mixed closing on Wednesday, following the Federal Reserve's monetary policy announcement. In a widely expected decision Federal Reserve left interest rates unchanged. After a two-day meeting, the Fed said it decided to maintain the target range for the federal funds rate at $0.75 to 1 percent and said recent data indicates that the labor market has continued to strengthen even as growth in economic activity slowed. The central bank also reiterated that it expects economic conditions will evolve in a manner that will warrant gradual increases in interest rates. The markets were in somber mood from the beginning reacting to quarterly results from tech giant Apple, which reported better than expected second quarter earnings but weaker than expected revenues and iPhone shipments.

On the economic front, payroll processor ADP released a report showing that private sector employment increased roughly in line with economist estimates in the month of April. ADP said private sector employment climbed by 177,000 jobs in April after surging up by a revised 255,000 in March.

The Dow Jones Industrial Average added 8.01 points or 0.04 percent to 20,957.90, on the other hand the Nasdaq declined by 22.82 points or 0.37 percent to 6,072.55 and the S&P 500 ended lower by 3.04 points or 0.13 percent to 2,388.13.

Indian ADRs made a mixed closing on Wednesday, HDFC Bank was up by 1.14%, Dr Reddy’s was up by 0.31% and Wipro was up by 0.04%. On the other hand ICICI Bank was down by 0.09% and Tata Motors was down by 0.36%.

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