Wall Street stocks slip even as Federal Reserve promises low rates

US stocks lost ground on Wednesday following a rocky trading session, with yields on Treasuries and the dollar both climbing.

The benchmark S&P 500 index, which slipped 0.5 per cent, slid into negative territory in the final hour of the trading day despite confirmation from policymakers at the Federal Reserve that they would keep interest rates low for the years to come.

The losses were centred in the technology industry, with shares of Apple, Amazon and Facebook all declining more than 2 per cent. The slide in technology stocks weighed on the Nasdaq Composite, which fell 1.3 per cent.

The majority of companies within the S&P 500 still ended the day higher, with the shares of banks and energy companies including ExxonMobil, Wells Fargo and Citigroup advancing.

US Treasuries slipped following the Fed decision and comments from chairman Jay Powell that the pace of the US economic recovery would eventually slow. The yield on the 10-year Treasury rose 2 basis points to 0.69 per cent. Yields rise as bond prices fall.

The dollar, which was hovering near two-year lows, climbed alongside the move in Treasury yields. The dollar rose 0.3 per cent against the euro.

The adoption by the Fed’s policy setting committee of a new average inflation target…

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