US Indices Closed With Sharp Decline

US indices closed with a sharp decline. FED's fixed interest rate decision could not cause the indices to rise.

At the end of the day, Dow Jones index decreased over 600 points and regressed to 30.303.17 points with a decrease of 2.05 percent. This level is on record as the index's highest drop since October 2020. The S&P 500 index fell 2.50 percent to 3,753.20 points, and the Nasdaq index fell 2.61 percent to 13,270.60 points. The US indices, which started the day with a decline by being affected by the companies' fourth quarter balance sheets, the US Federal Reserve (FED) signaled that it did not make any changes in interest rates and asset purchases and that it would continue its supportive market-friendly stance, but the markets were not positively affected by the situation. The US Federal Reserve (FED) did not disappoint the expectations and left the policy rate unchanged in the 0-0.25 range. In addition, the FED did not change its verbal guidance regarding asset purchases. FED President Jerome Powell emphasized that some developments tell a better outlook later this year and that they will maintain the supportive stance of monetary policy until employment and inflation targets are achieved. Pointing out that the economy has a long way to go in order to reach its employment and inflation targets, Powell said: “It will probably take some time to make significant progress.” In addition to these developments, US aircraft manufacturer Boeing, which announced its balance sheet for the last quarter of 2020 today, announced that it suffered a record loss of $ 11.9 billion in 2020 due to the cessation of the flight of 737 Max-type passenger planes and the negative impact of the coronavirus epidemic. After Boeing's balance sheet announcement, its shares fell nearly 4 percent.