The main US stock indices restored almost all previously lost positions, and completed trading mainly in positive territory, the reason for which was more obvious comments and signals from the head of the Fed, Powell, that politicians do not want to cut rates. However, in Powell's comments there was enough evidence that politicians were ready to support economic expansion and do what would be necessary.

As for the outcome of the Fed meeting, the Central Bank expectedly lowered interest rates, explaining its decision by the desire to protect the US economy from the global economic downturn. The Fed announced the possibility of a further reduction in rates, but there was no unanimity among the leaders about the correctness of the decision made on Wednesday and the prospects for easing the policy (7 out of 10 leaders voted to lower rates).

Meanwhile, the accompanying statement did not differ much from the July one, when the leaders left the opportunity to lower rates in the future. The Fed management said it would "ponder the further trajectory" of rates, "continuing to track incoming information and analyzing its significance for the prospects of the economy."

Investor data also attracted some US data. A report from the Department of Commerce showed that new housing in the US recorded a significant rebound in August. According to the report, housing construction in August rose 12.3% to an annual level of 1.364 million in August after falling 1.5% to a revised 1.215 million in July. Economists had expected housing construction volumes to grow 5% to 1.250 million from 1.191 million, which was originally reported the previous month. At the same time, building permits also increased - by 7.7% to an annualized level of 1.419 million after an increase of 6.9% to a revised level of 1.317 million in July. The number of building permits was expected to decline by 2.7% to 1.300 million from 1.336 million, which was originally reported in the previous month.

Most DOW components completed trading in positive territory (16 out of 30). The biggest gainers were JPMorgan Chase & Co. (JPM; + 0.89%). Outsiders were shares of Dow Inc. (DOW; -1.25%).

Most S&P sectors recorded a decline. The conglomerate sector showed the largest decrease (-0.8%). The utilities sector grew more than the rest (+ 0.3%).

At the time of closing:

Dow 27,147.08 +36.28 + 0.13%

S&P 500 3,006.73 +1.03 + 0.03%

Nasdaq 100 8,177.39 -8.62 -0.11%

U.S. stock-index futures fell slightly on Wednesday as investors awaited the announcement of Federal Reserve’s decision on interest rates.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

FedEx (FDX) target lowered to $190 at Cowen

AT&T (T) downgraded to Hold from Buy at DZ Bank

FedEx (FDX) downgraded to Hold from Buy at Stifel; target lowered to $171

FedEx (FDX) downgraded to Market Perform from Outperform at BMO Capital Markets; target lowered to $165

FedEx (FDX) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets

FedEx (FDX) downgraded to Hold from Buy at Deutsche Bank; target lowered to $142

FedEx (FDX) reported Q1 FY 2020 earnings of $3.05 per share (versus $3.46 in Q1 FY 2019), missing analysts’ consensus estimate of $3.16.

The company’s quarterly revenues amounted to $17.048 bln (0.0% y/y), generally in line with analysts’ consensus estimate of $17.049 bln.

The company also issued downside guidance for FY 2020, projecting EPS of $11.00-13.00 versus analysts’ consensus estimate of $14.62.

FDX fell to $154.65 (-10.76%) in pre-market trading.