US stocks mixed as investors wait for Fed decision

By Ovunc Kutlu

ANKARA (AA) - US stocks were mixed at the opening bell on Wednesday as investors await a Federal Reserve meeting to conclude and Chair Jerome Powell's speech.

The Dow Jones was down 114 points to 33,870 with Microsoft shedding 3% despite strong earnings. The tech firm's income rose 43.9% to $15.4 billion in the January-March period, while revenue increased 19.1% to $41.7 billion.

The S&P 500 was up 5 points to 4,192 at 9.45 a.m. EDT (1345GMT) with Tesla losing 1.1%.

The Nasdaq, on the other hand, was down 9 to 14,080 with Google's parent, Alphabet, soaring to an all-time high of $2,417 with strong results. While the company's revenue increased 34.5% to $55.3 billion in the first quarter, its earnings soared 163% to $17.9 billion.

Investors will focus on the Federal Open Market Committee's statement that will be released at 2 p.m. EDT (1800GMT). Powell's remarks will be delivered at 2.30 p.m. EDT (1830GMT).

Powell's possible hints about when interest rates would be raised and comments on the bank's asset purchase program will be key indicators for investors.

If he signals that rates could increase next year instead of 2023, as the Fed previously indicated, and if the central bank trims its asset purchase program in response to economic recovery, they would create a bearish sentiment in the markets and the US dollar would rise.

US President Joe Biden will also unveil his tax plan later, which aims to increase taxes for wealthy Americans to 39.6%, reversing the 2017 tax cuts on rates from 39.6% to 37% for the top 1% earners.

He will also announce a $1.8 trillion plan that combines $1 trillion in investment with $800 billion in tax cuts and credits for middle- and lower-income American families.