S&P snaps rally as U.S. stocks end mixed on Fed outlook

NEW YORK (Forex News Now) – U.S. stock markets closed mixed on Wednesday, after a weaker economic forecast from the Federal Reserve spooked investors.

The Dow Jones Industrial Average climbed 3.7 points, or 0.04 percent, to 10,367 and the Nasdaq Composite climbed 7.81 points, or 0.35 percent, to 2,250.

But the Standard & Poor’s 500 dropped 0.17 points, or 0.02 percent, to 1,095, snapping a 6-day rally after the Fed lowered its projection for gross domestic product, the broadest measure of economic activity.

The Fed said U.S. GDP will increase between 3 percent and 3.5 percent this year, down from the 3.2 percent to 3.7 percent forecast in April.

U.S. stocks gained earlier after Intel Corp reported sales of USD 10.8 billion and a second-quarter profit of 51 cents a share, far above market expectations.

The technology bellwether subsequently rose 3.65 percent on the Nasdaq.