(menafn – ecpulse)
U.S Stocks were slightly changed on Wednesday afternoon, erasing earlier gains after the Federal Reserve Chairman Ben Bernanke dampened speculation of more monetary easing in a testimony to the House Financial Services Committee in Washington.
Equities reversed earlier gains despite of the unexpcted 3.0 percent annlual rate of economic expansion. Bernanke said told the congress today that carrying more easing is warranted even as jobless claims fall and rising oil prices may push inflation up temporarily in the world’s largest economy.
Moreover, bernanke said Policy makers judge that “sustaining a highly accommodative stance for monetary policy is consistent with promoting both objectives” of the Fed; stable prices and maximum employment.
Commodity shares had the biggest loss in the S&P, as gold is poised for the biggest slump this year. The largest U.S gold producer, Newmont Mining Corp, fell 3.6 percent. First Solar Inc slipped 10 percent after the world's largest maker of thin-film solar panels reproted quarterly loss.
Apple Inc rose 1.6 percent after the tech giant capped a 500 billion in market capitalization and unveiled plans to introduce a new iPad next month. Staples Inc plunged 9.3 percent as the world's largest office-products company delivered a 2012 forecast that was "lower quality" than analysts expected.
The Dollar gained on Bernanke's testimony, driving the index which tracks the performance of the U.S. dollar against its most traded counterparts, up high from today's opening level of 78.11 to currently trade at 78.62, recording its highest level at 78.69 and its lowest at 78.10.
Gold prices dropped significantly to reach 1706.72 from the opening level of 1786.20. Oil declined to reach 105.70 after opening at 106.60 a barrel, after the U.S EIA said curde oil inventories increased by 4.2 million barrels last week.
As of 12:50 p.m. in New York, the sectors that shed points the most leading the decline in the DJIA were the Basci Materials, Technology and Financials shares, respectively, while in the S&P 500 index most dropping sectors were the Basic Materials, Oil & Gas and Health Care shares, respectively.
Accordingly, the Dow Jones Industrial Average traded lower by 17.52 points or 0.13 percent at 12987.60, while the S&P 500 index traded at 1369.55 as it dropped by 2.63 points or 0.19 percent, meanwhile the NASDAQ Composite index declined 5.92 points or 0.20 percent to trade at 2980.84.