Stocks on Wall Street correct after Thursday's rally [E]

U.S. stocks on Friday trade in opposite directions after significant 

rally yesterday. 

Two hours later Dow -0.05%, S&P +0.16% and Nasdaq composite -0.16%.

On Thursday Dow climbed 217 points, that is the biggest daily 

growth for the last 3 years. The reason of higher activity on Wall Street was 

pessimistic tone of accompanying statement after FOMC meeting. As expected, key rate was raised to 5.25%. 

Investors have been worried for weeks that, the Fed will be aggressive 

and influence the economic growth and corporate profits. The statement the Fed released Thursday contained some softer language, which many took as a sign that an end to the central bank's two-year rate-hiking campaign may be in sight. However, sentiments of FOMC members appeared pessimistic, and market players defined it like further end of 2-year cycle of rate increase in the USA. The 

dollar sank after the Fed meeting because of the increased likelihood of a 

pause.

Before the bell PCE price index was published, which showed growth 0.2% in May, justified analyst' forecasts. A separate report showed rise of personal income on 0.4%, exceeded forecast +0.2%, however lower than in April +0.7%. Spending increased at 0.4%, and also higher than previous index +0.7%.

Michigan University published final assessment of consumer confidence in June, which rose to 84.9 from 82.4. Besides, investors had also June Chicago PMI. According to statistics, index fell to 56.5 from 61.5. 

From 30 Dow components, 21 shows growth, and 11 decrease. 

General Motors stocks grew 5% after Kirk Kerkorian, one of the 

company's largest investors, urged to consider a three-way partnership with 

Nissan Motor Corp. and Renault SA.