Mon, 01 Nov 2010 17:00:00 +0100

US stocks come off highs on Fed anticipation

FXstreet.com (Barcelona) - Despite booming in the opening hour due to a strong US manufacturing report, equities are heading lower as caution prevails ahead of tomorrow´s Fed policy meeting. After more than an hour of trading, the DOW and S&P remain around 0.40% higher each, while the NASDAQ battles close to even.

The surprise improvement from the ISM manufacturing index brought an all-around higher risk appetite, however the market is still looking ahead towards tomorrow´s Fed meeting. The FOMC in particular is expected to announce further stimulus measures in an effort to boost the economy, yet traders hold a cautious outlook in the case of unexpected development.

The tech sector is one of the day´s best performers with semi-conductor stocks rising on positive sales. In particular shares of Intel are up more than 2.0% so far, while Nydia jumps around 0.3%. Other computer giants Apple and Mircrosoft show gains of around 1.0% each.