Aug 02, 2012, 08.14 AM IST

US mkts end lower as Fed retain its current monetary policy

The US markets closed lower in a see-saw session yesterday after the Fed maintained its current monetary policy, but left the door open for additional stimulus should conditions warrant.

Source: Moneycontrol.com

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The US markets closed lower in a see-saw session yesterday after the Fed maintained its current monetary policy, but left the door open for additional stimulus should conditions warrant. The Fed said it will continue to hold interest rates low through at least 2014 and continue operation twist through the end of the year.

Dow Jones Industrial Average was down 0.25% or 32.55 points at 12976.13. Nasdaq Composite was down 0.66% or 19.31 points at 2920.21. Standard & Poor's 500 was down 0.29% or 4 points at 1375.32.

On economic data front, it was a mixed set of data; ADP survey showed private employers added 163,000 jobs last month. That's lower than June's revised total of 172,000 but higher than the forecasted 120,000.

ISM manufacturing index came in at 49.8 percent for July, an indication of continued contraction. Meanwhile, June construction spending rose 0.4% after a May increase of 0.9%.

In key data to watch out for in US today, weekly jobless claims may rise to 370,000 versus 353,000 the prior week. Also the factory orders are expected to remain unchanged at 0.7%.

In the currency space, the dollar maintains its gains after the Federal Reserve refrained from offering new stimulus. The euro is below 1.23 to the dollar.

In commodities, crude prices gain with Brent above USD 105 levels following a drop in US stockpiles.

From the precious metals space, gold declined after the Fed held off on increasing stimulus measures, lowering demand for the precious metal.