US Stock Market Overview – Stocks Close Mixed; Fed Remains Dovish

US stocks were mixed on Wednesday but finished well off the lows of the session. Prices were at the worst of the day around 2pm ET, following the FOMC decision. Retail sales came in softer than expected which started the session on a weak note. As word came that a stimulus package was making headway, stocks started to rally. Sectors in the S&P 500 index were mixed, led higher by Cyclicals, Utilties were the worst performing sector in the S&P 500 index. The dollar continued to head south and Bitcoin rallied above 20,000. Oil prices rallied following a larger than expected draw in crude oil inventories.

U.S. Retail Sales Fall More than Expected

According to the Commerce Department, U.S. retail sales dropped 1.1% in November from the prior month. October sales were revised to a decline of 0.1% from an earlier estimate of a 0.3% increase. Expectations were for a 0.3% decline. Sales were up by 4.1% in November when compared with the same month a year ago.

Fed Says There is Not Much They Can Do

The Fed delivered dovish commentary, saying it would continue to buy at least $120 billion of bonds each month until further progress has been made toward the Committee’s maximum employment and price stability goals. The Fed already had committed to not raising rates until inflation exceeds its 2% goal even if unemployment comes down to levels that generally had signaled price pressures. Changing the language around the asset purchases underlines the central bank’s commitment to seeing the recovery through from its coronavirus-era slump.