The S&P 500 closed near the flatline on Wednesday after Federal Reserve Chairman Jerome Powell said substantial economic improvement is needed for the central bank to start dialing back its easy-money policies.

The broad equity benchmark erased earlier losses and ended the session little changed at 4,400.64.  

The Federal Open Market Committee kept interest rates in a target range near zero, reiterating its view that the economy continues to “strengthen” despite the spread of the delta coronavirus strain. Still, Powell stressed that the economy a good deal away from achieving the Fed’s dual mandates of stable prices and maximum employment.

The central bank started purchasing at least $120 billion a month in bonds and other securities in December until “substantial further progress” had been made on employment and inflation.
 

U.S. stock futures were little changed in Wednesday evening trade after the Federal Reserve concluded its two-day meeting of the Federal Open Market Committee by making no move on asset purchases.

The tech-heavy Nasdaq Composite climbed 0.7% to 14,762.58.

The moves in futures came after Fed Chairman Jerome Powell cautioned in a press conference that although the economy is making progress toward its goals, it has a way to go before the central bank would actually adjust its easy policies. Treasury yields inched climbed higher in anticipation of the announcement but pulled back slightly following Powell’s comments.

Amazon, Pinterest and Anheuser-Busch are set to report earnings Thursday. Traders will also watch out for the latest readings on initial jobless claims and pending home sales.