Wall Street waits as Federal Reserve decides on interest rates amidst market volatility

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U.S. stocks are drifting Wednesday as Wall Street waits to hear from the Federal Reserve about where interest rates may be heading.

A banner for cruise operator Viking, marking its initial public offering, hangs on the front of the New York Stock Exchange on Wednesday, May 1, 2024 in New York. The S&P 500 was down 0.4% in afternoon trading, coming off its first losing month in the last six. TheCVS Health tumbled 17% after reporting weaker results for the latest quarter than analysts expected.

He recently hinted rates may stay high for a while as Fed officials wait for more confirmation inflation is heading down toward their 2% target. That was a disappointment for Wall Street, after the Fed earlier had indicated it was penciling in three cuts to rates during 2024. Starbucks dropped 16.8% after falling short of expectations for both profit and revenue in the latest quarter. Sales trends weakened at its stores outside the United States in particular, and it cut its full-year forecasts for profit and revenue.

Chemical producer DuPont was another winner, up 7.3%, after reporting stronger profit than expected. It said demand from customers in the semiconductor industry continued to recover.

 

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