Wall Street fell more than 1% after the Fed minutes

Wall Street fell more than 1% after the Fed minutes

Major indices sharply trimmed their losses following the release of the minutes and the Dow briefly turned positive before returning to earlier losses.

The minutes also showed that Fed officials saw “little indication” late last month that US inflation pressures were easing.with participants saying that inflation could take longer than expected to dissipate.

The Fed has raised its benchmark overnight rate by 225 points this year to try to rein in high inflation. After the publication of the minutes, futures traders linked to the official Fed interest rate saw a rise of half a percentage point in September as more likely.

“They remained aggressive, but they also opened the door for a half percentage point hike in September, instead of 75,” said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

The market was down long before the minutes, with growth stocks under pressure and weak results from Target weighing on retailers.

“Although inflationary pressures have eased, seemingly entrenched pockets of inflation remain, most notably in food prices, rents and wages,” Quincy Krosby, chief global strategist at LPL Financial, said in a post-minute note. .

After a brutal first half of the year, shares have risen since early July. The positive results of the companies have helped to boost the rebound.

Source: Ambito

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest Posts