X Major stock indexes closed mixed Wednesday after the Fed raised its key lending rate by a quarter point to 1% to 1.25%, and also agreed on details to start shrinking its balance sheet this year.
The Nasdaq lost 0.7%, the S&P 500 fell 0.1% as both pared losses in the final hour. The Dow Jones industrial average climbed 0.2%. The Russell 2000 small-cap index gave back 0.7%. Volume on the NYSE was higher than Tuesday's level while Nasdaq volume was lower, early figures showed.
Economic data released before the open didn't do anything to strengthen the argument for more rate hikes. Consumer prices were tame, falling 0.1% vs. the consensus estimate for flat. Excluding food and energy, prices rose 0.1% vs. expectations for a 0.2% gain.
Meanwhile, retail sales unexpectedly fell 0.3% in May, the worst drop since January 2016. The U.S. dollar weakened on the news, and the 10-year Treasury yield tumbled 10 basis points to 2.11%.
The Fed's "dot plot" was mostly unchanged from the March meeting as committee members expect one more quarter-point hike by the end of the year.
In the stock market today, homebuilders, some health care and even some retail groups outperformed. Celgene (CELG) rebounded above the 50-day moving average, rising 1.2% as the stock works on a new base. Vertex (VRTX) gained nearly 2% as it continues to show supporting action at the 10-week moving average.
PulteGroup (PHM) was on pace for its fourth straight gain after a breakout from a cup-with-handle base. It's still in buy range.
Benchmark crude oil for July delivery slumped nearly 4% to $44.75 a barrel. Oil was weak on news that gasoline inventories rose 2.1 million barrels last week, according to the Energy Information Administration. Crude inventories fell by 1.66 million barrels.
Starbucks (SBUX) looked poised for its eighth straight decline after Wedbush downgraded shares to neutral from outperform while maintaining a 65 price target. Shares fell 1% to 60.27 and closed below the 50-day moving average for the first time since March 23.
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