Wall Street's Flat Close: Navigating Fed's Hawkish Stance

Wall Street ended nearly flat after an attempted rally, as investors analyzed the Federal Reserve's cautious outlook. U.S. Treasury yields reached new highs, and gold prices increased. Central banks worldwide maintained differing stances, impacting stocks. Economic data highlighted U.S. strength amid cautious monetary policies impacting various markets.

Wall Street closed nearly flat on Thursday, as an earlier rally fizzled out. Investors are digesting the Federal Reserve's cautious economic outlook, as U.S. Treasury yields climbed to their highest since May, reflecting the central bank's measured policy approach to easing in the upcoming year.

The Fed's conservative projections and anticipated slowdown of rate cuts led to a significant U.S. stock sell-off on Wednesday. Market reactions were driven by Fed Chair Jerome Powell's remarks, creating an atmosphere of real-time speculation about future interest rate policies.

Despite the cautious outlook, U.S. economic data portrayed strength, with revisions in GDP, jobless claims, and home sales exceeding expectations, bolstering market confidence. This comes amid varied global policies, with standout reactions such as European stocks witnessing their biggest drop in weeks due to investor caution.

(With inputs from agencies.)