Asian stocks headed for a cautious start Thursday after the Fed's latest comments, and tech shares retreated in the U.S. Futures were flat in Japan while those in Hong Kong and Australia slipped. The S&P 500 Index earlier erased gains to end the session lower after Powell said he’s not sure if the faster-than-expected recovery will continue. A tumble in tech behemoths such as Apple and Facebook also dragged down the gauge. The Treasury yield curve steepened as Powell stopped short of offering new specifics on the Fed’s approach to the monthly bond purchases that have buttressed markets. Some traders may have been expecting signals regarding plans to target longer maturities. The dollar was little changed. Elsewhere, oil surged after government data showed shrinking U.S. crude stockpiles.
The S&P 500 initially jumped as the Fed signaled it would hold rates near zero through at least 2023. The rally quickly fizzled out after Powell said he’s not sure if the faster-than-expected recovery will continue. A tumble in tech behemoths such as Apple and Facebook also dragged down the gauge. The Treasury yield curve steepened as the U.S. central bank stopped short of offering new specifics on its approach to the monthly bond purchases that have buttressed markets. Some traders might have been expecting signals regarding plans to target longer maturities.
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