US stock market: Dow, S&P 500 end lower after Fed minutes cloud outlook for rates
Wall Street ended lower on Wednesday after the Federal Reserve's minutes showed central bank officials were divided over the need for more interest rate hikes at their last meeting. The minutes of the Fed's July monetary policy meeting showed most policymakers continue to prioritize the battle against inflation, adding to uncertainty among investors about the outlook for interest rates.
«I agree with the governors that we're not convinced that inflation is totally in the rear view mirror,» said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. «I think the markets will be on pins and needles regarding what the Fed will do all through September and into October.» For the session, the S&P 500 lost 33.53 points, or 0.76%, to close at 4,404.33 points.
The index has now declined 1.9% over the past two sessions, its deepest two-day decline since April. The Nasdaq Composite dropped 156.42 points, or 1.15%, to 13,474.63, while the Dow Jones Industrial Average fell 180.65 points, or 0.52%, to 34,765.74 points.
Bank shares extended losses, with the S&P 500 bank index down 1% and Bank of America leading losses among bigger banks to end 2.2% lower. Nvidia also reversed early gains to end 1% lower after rising in the last two sessions, as two more brokerages raised their price targets on the stock ahead of the chip designer's quarterly results next week.
«Investors are starting to take a more sober look at the economic picture here,» said Mike Reynolds, vice president of investment strategy at Glenmede. Equities have suffered through a rough patch in August, with the S&P 500 languishing near one-month lows as data underscoring sticky inflation and a robust economy fans fears of interest rates staying
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