Premarket: Why are stocks dropping? Hint: Jerome Powell is involved

Fed touts economic recovery, vows to keep interest rates low - The Jakarta Post

Fed touts economic recovery, vows to keep interest rates low - The Jakarta Post

Market benchmarks in Shanghai, Tokyo, Seoul and Hong Kong all retreated.

The Federal Open Market Committee will release its policy statement and economic projections at 2 p.m. ET (1800 GMT), followed by Fed Chair Jerome Powell's virtual news briefing half an hour later.

What's happening: The Fed indicated on Wednesday that it would hold rates at or near zero through 2023 and boosted its economic projections.

Markets "hoped for the Fed to put policy money where the mouth is" but "ended up a tad disappointed", Mizuho Bank said in a report.

The recovery, Powell noted, is expected to slow, requiring continued support from further government spending and, he said, the Fed, which is continuing to debate further actions including a possibly faster pace of bond buying.

The central bank's two-day meeting is its first under a newly adopted framework that promises to shoot for inflation above 2% to make up for periods where it is running below that target. The Hang Seng in Hong Kong retreated 1.1 percent to 24,454.63. New Zealand and Southeast Asia markets all retreated.

The new promise to "moderately exceed" 2 percent inflation, he added, "should be a very powerful statement in supporting economic activity".

US investors are counting on Congress for a new support package after additional unemployment benefits that help to support consumer spending expired, but legislators are deadlocked on its possible size. The S&P 500 is off 1.1% in premarket trading after dropping 0.5% on Wednesday.

Apple debuts discount watches, new iPads, but no new iPhones yet
That means you'll get much more juice out of a one-hour charging session right before bed than you would on an old Watch model. The research firm GlobalData pegs Apple's share of the Dollars 64 billion smartwatch market at roughly 60 per cent.

The S&P 500 declined to 3,385.49. The Dow Jones Industrial average rose 0.1%, to 28,032.38.

Wall Street's main indexes attempted a comeback from a tech-driven slump earlier in the month that saw the Nasdaq Composite index slip into correction territory in just three sessions.

The median GDP forecast among the 17 FOMC members reflect the better-than-expected U.S. recovery, and they now see the economy contracting by only 3.7 percent this year, compared to 6.5 percent drop expected in June. The central bank now expects a median unemployment rate of 7.6% this year, down from the 9.3% expected in June.

In energy markets, benchmark United States crude oil for October delivery lost 28 cents to $39.88 per barrel in electronic trading on the New York Mercantile Exchange. Meanwhile, a report released by the Commerce Department showed that United States business inventories rose 0.1% in July after falling 1.1% in June.

In Europe, the broad FTSEurofirst 300 index dropped 0.40% to 1,440.42.

The Japanese yen strengthened 0.30% versus the greenback at 104.62 per dollar.

The dollar rebounded for its best daily gain in more than a week against a basket of other top currencies and the euro dipped back under $1.18. Brent crude oil for November delivery shed 55 cents to $41.67 per barrel in London.

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