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June 10, 2020, 4:54 p.m. EDT

Dow closes 280 points lower, Nasdaq above 10,000 after Fed says it’ll keep buying bonds and interest rates near zero

“We’re not thinking about raising rates, we’re not even thinking about thinking about raising rates,” Powell says.

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By Mark DeCambre, MarketWatch , Sunny Oh

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The pullback for the U.S. equity market in the past two sessions, however, reflects some concerns that the trend higher in markets has gotten ahead of the fundamentals of the economy, even as states and cities restart business activity as lockdown protocols are eased. Investors say the catch-up in stocks hurt by the coronavirus crisis could now be running its course, as money returns back to the high-growth companies in the Nasdaq and S&P 500.

The S&P 500 Information Technology Sector Index /zigman2/quotes/210600213/delayed XX:SP500.45 -0.97%  closed higher four days in a row Wednesday, ending at 1,828.24, a record closing high, according to Dow Jones Market Data. Alphabet /zigman2/quotes/205453964/composite GOOG -0.23%   /zigman2/quotes/202490156/composite GOOGL -0.19%  closed above $1 trillion in market capitalization for the first time since February 21st this year, while Apple closed above the $1.5 trillion market cap value for the first time today, according to Dow Jones Market Data.

Earlier U.S. Treasury Secretary Steve Mnuchin told the Senate Small Business and Entrepreneurship Committee that more fiscal stimulus may be needed. “I definitely think we are going to need another bipartisan legislation to put more money into the economy,” Mnuchin said Wednesday.

In economic data, U.S. May consumer price index inflation fell 0.1%, marking its third straight decline, while the core gauge stripping out for food and energy prices also fell for a third month in a row. The median estimates from economists surveyed by Econoday is for a month-over-month reading of 0%.

Related: Mall deal worth $3.6 billion implodes as pandemic shakes retail

Which stocks were in focus?

  • MGM Resorts International /zigman2/quotes/209932643/composite MGM -1.59% said that it is reopening more resorts in Las Vegas over the next few weeks. The casino company’s shares fell 7%.

  • Shares of Hertz Global Holdings Inc.  fell 39.7% after the car rental company disclosed Wednesday that it received on May 26 a delisting notice from the New York Stock Exchange.

  • Best Buy Co. Inc . /zigman2/quotes/205918291/composite BBY +0.07%  said late Tuesday that starting next Monday it will allow a “limited” number of people inside most of its stores, without the need for an appointment. Its shares advanced 0.8%.

  • Shares of Verint Systems In c. /zigman2/quotes/209184374/composite VRNT +0.91%  tumbled 11.7% after the data analytics company late Tuesday reported lower-than-expected adjusted fiscal first-quarter profits, and the quarter’s sales were also a miss.

  • Merck Inc. /zigman2/quotes/209956077/composite MRK +1.47%  said late Tuesday that its drug Keytruda didn’t reach its goals in a late-stage clinical study for the treatment of bladder cancer. The pharmaceutical firm’s shares shed 0.6%.

  • Shares of GameStop Corp . /zigman2/quotes/203755179/composite GME -11.05% gained 2.2% after the retailer of multichannel videogame, consumer electronics, and wireless services late Tuesday reported fiscal first-quarter results battered by the coronavirus pandemic.

  • Chewy Inc. ‘s stock /zigman2/quotes/212690528/composite CHWY -5.69%  fell 3.7%, even after the online pet-products retailer’s results and outlook topped Wall Street estimates.

  • Simon Property Group /zigman2/quotes/209746667/composite SPG -2.05% shares fell 4%, after its $3.6 billion deal to buy mall rival Taubman Centers  fell apart, amid a dour outlook for indoor malls as the conavirus pandemic shakes the retail industry. Shares of Taubman tumbled 20.1%.

  • Shares of Google-parent Alphabet Inc . /zigman2/quotes/202490156/composite GOOGL -0.19%  and /zigman2/quotes/205453964/composite GOOG -0.23%  rallied enough Wednesday to make the internet giant the fourth member of the trillion dollar club.

  • Facebook Inc. /zigman2/quotes/205064656/composite FB +2.33%  shares fell 0.8%, but many other technology stocks rose, led by Amazon /zigman2/quotes/210331248/composite AMZN -0.74% , Apple /zigman2/quotes/202934861/composite AAPL -1.37% Netflix /zigman2/quotes/202353025/composite NFLX -0.58% /zigman2/quotes/202353025/composite NFLX -0.58% /zigman2/quotes/202353025/composite NFLX -0.58% /zigman2/quotes/202353025/composite NFLX -0.58%

How did other assets fare?

Oil prices finished higher Wednesday , as the dollar weakened and the Fed promised to keep rates near zero. West Texas Intermediate added 66 cents, or 1.7%, ending at $39.60 a barrel on the New York Mercantile Exchange.

The greenback fell 0.5% against its major rivals, as gauged by the ICE U.S. Dollar index /zigman2/quotes/210598269/delayed DXY +0.04% .

In precious metals, August gold on Comex settled down $1.20, or 0.7%, at $1,720.70 an ounce.

The 10-year Treasury note yield /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y 0.00%  tumbled 9 basis points to 0.744%. Bond prices move in the opposite direction of yields.

In global equities, the Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.20% closed down 0.4%, while the FTSE 100 index /zigman2/quotes/210598409/delayed UK:UKX -0.22% shed 0.1%.

In Asia, Japan’s Nikkei /zigman2/quotes/210597971/delayed JP:NIK -0.97% closed 0.2% higher, the China CSI 300 /zigman2/quotes/210598128/delayed XX:000300 +1.11%  finished up 0.2% and Hong Kong’s Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI +1.01% closed in negative territory but virtually unchanged. South Korea’s Kospi index /zigman2/quotes/210598069/delayed KR:180721 -2.33% gained 0.3%.

<STRONG>Mark DeCambre contributed reporting</STRONG>

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Jan. 18, 2021 3:15p
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XX : China Securities Index
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KR : Korea Exchange
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Mark DeCambre is MarketWatch's markets editor. He is based in New York. Follow him on Twitter @mdecambre. Sunny Oh is a MarketWatch fixed-income reporter based in New York.

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