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Overnight Markets: US stocks end mostly lower after Fed rate move

Overnight Markets: US stocks end mostly lower after Fed rate move

The S&P 500 closed lower on Thursday after the Federal Reserve left the interest rates unchanged, and energy stocks were the biggest drag as US crude oil prices fell.

The Dow Jones Industrial Average added 11 points, or 0.04%, to 26,191, the S&P 500 lost seven points, or 0.25%, to 2,807 and the Nasdaq Composite dropped 40 points, or 0.53%, to 7,531.

The Fed said ongoing strong job gains and household spending were keeping the economy on track but business investment "moderated from its rapid pace earlier in the year," creating a possible drag on future economic growth.

Many investors said the statement was largely as expected, aside from the Fed's comment about business investments, and suggested that the Fed's next rate hike would be in December.

Energy stocks were the S&P's biggest drag with a 2.1% decline as US crude oil futures entered a bear market, falling more than 20% from their 3 October high.

Earlier in the session, the economic data showed weekly jobless claims dipped slightly to 214,000.

In company news, shares of Square Inc. fell nearly 10% after the company beat earnings but issued lower than expected fourth-quarter guidance.

Tesla Inc. added 0.9% after the electric-car maker named Robyn Denholm as its new chairman.

Arris International gained 10% after the cable-industry vendor said it was being acquired by CommScope Holding Co.

Cardinal Health Inc. added 4.6% after the health-care-services company reported fiscal first-quarter profit and revenue that rose above expectations.

D.R. Horton Inc. declined 9% after it reported fiscal fourth-quarter earnings in line with expectations, but its revenue fell short.

Monster Beverage Co. shed 3.2% after chief executive Rodney Sacks said in an earnings call with analysts that Coca-Cola Co. planned to release two new competitor energy drinks.

In Asia, stocks were broadly lower on Friday in morning trade after the US Fed left interest rates unchanged at its latest policy meeting.

In China, the Shanghai composite shed 0.88%, while in Hong Kong, the Hang Seng index fell 1.42%. Japan's Nikkei 225 fell 0.72% while the Topix index saw losses of 0.2%. South Korea's Kospi was largely flat. In Australia, the ASX 200 was lower by 0.41%.


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