US equities in retreat after an unsurprising Fed meeting

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US markets are set to weaken at the start of trading on Thursday, a day after the Federal Reserve left interest rates unchanged, as expected, and avoided dropping any strong hints about what to expect for the rest of the year.

Futures have tipped the Dow Jones Industrial Average to open 0.25 per cent lower at 19,766, and the S&P 500 is set to shed 0.22 per cent to bring it down to 2,269.75. The tech-heavy Nasdaq is also poised to shed 0.2 per cent to 5,138.5, despite a strong set of earnings yesterday from Facebook.

The US dollar is also in retreat this morning. After previously closing at 99.75, the dollar index – which measures the buck against a basket of its peers – has fallen 0.33 per cent so far, as US President Donald Trump continues to romp through his first weeks in office with protectionist proclamations but little indication that he will imminently take up the tax cuts and infrastructure spending for which companies are dearly hoping. The lack of clarity on those measures, and from the Fed on future interest-rate rises, has put pressure on the dollar – which may be just what some in the Trump administration are hoping for, at least in the short term.

Treasury yields, meanwhile, are in retreat, with the 10-year note shedding 2.6 basis points to put yields – which move in the opposite direction of prices – at 2.44 per cent at the start of the trading day, extending their fall from the immediate aftermath of the Fed’s comments.

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