Wall Street stocks fall on Fed minutes, bank stocks add to losses

NEW YORK, Aug 16 (Reuters) – Wall Street plummeted on Wednesday after Federal Reserve minutes were released showing central bankers at their last meeting disagreed over the need for more rate hikes. At 3:02 p.m. ET, the S&P 500 was down 15.86 points, or 0.36%, to 4,422, and the Nasdaq Composite was down 59.84 points, or 0.44% to 13,571.21 points, and the Dow Jones Industrial Average fell 61.97 points, or 0.18%, to 34,884.42.

“Since the beginning of the year we have experienced an incredible rally. This has dashed any expectations of a bearish reaction to this year’s recession. “It’s starting to let off some steam from this rally,” said Mike Reynolds, vice president of investment strategy at Glenmede. “Investors are beginning to take a more sober view of the economy.” However, the minutes showed that most policymakers continued to prioritize fighting inflation.

“I agree with governors that we are not convinced that inflation is fully visible in the rearview mirror,” said Peter Tuz, chairman of Chase Investment Counsel in Charlottesville, Virginia. “I think the markets will be wondering what the Fed is going to do in September and October.” Shares in Bank suffered further losses, with the S&P 500 bank index down 0.9%. Bank of America lost 1.9%, leading to losses at the big banks.

The stock gained 3.3%, beating the big retailer’s second-quarter earnings forecast and beating its full-year guidance.

suffered in August as the S&P 500 traded near monthly lows. The data points to continued inflation and a strong economy as fans fear interest rates will remain high for some time. With investors largely anticipating an end to the Fed’s monetary tightening, fears remain that the central bank may leave interest rates at current levels for longer.

Nvidia dropped to 0.Gain 12% in the last two sessions as two more brokers raised their share price targets ahead of next week’s chipmakers quarterly results. falling stocks outperformed rising stocks in the S&P 500 by 1.9 to one.

 

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