Dow loses, Nasdaq gains after Fed affirms improvement

By Ovunc Kutlu

ANKARA (AA) - Major indexes in the US stock market closed Wednesday mixed after the Federal Reserve affirmed American economy has improved but it is short of full recovery.

The Dow Jones plummeted 127 points, or 0.36%, to 34,930, while the S&P 500 was almost flat by losing less than one point to 4,400 to end the day at negative territory. Both indexes posted losses for the second day in a row.

The Nasdaq, on the other hand, jumped 102 points, or 0.7%, to 14,762 driven by tech companies such as Twitter and Google's parent Alphabet soaring 2.3% and 3.2%, respectively.

Investors got mixed results from the Federal Reserve statement that said sectors most adversely affected by the coronavirus pandemic have shown improvement, but they have not fully recovered.

The Fed Chair Jerome Powell later said in a press conference that inflation has increased notably in the US and it will likely remain elevated in coming months before moderating.

The markets will now await signals from the Fed officials at the annual Jackson Hole Economic Symposium that will be held in late August, and the Fed's next meeting on Sept. 21-22 where it will release projections on economic growth, inflation and interest rates.