Dow posts winning streak amid Fed minutes and profits
- US stocks fell on Wednesday as the Dow Jones Industrial Average ended its five-day winning streak.
- Minutes from the Federal Reserve’s July meeting indicated that policymakers see the pace of future rate hikes slowing.
- Earlier in the trading session, Target reported second-quarter earnings that missed forecasts.
U.S. stocks fell on Wednesday, with the Dow Jones Industrial Average ending its five-day winning streak as investors weighed central bank comments and retail earnings.
Minutes from the Federal Reserve’s July meeting indicated that policymakers see the pace of future rate hikes slowing.
“Fed Chairman Jerome Powell’s famous words after the last FOMC meeting were that the Fed would remain ‘data dependent’ going forward,” said Louis Navellier, chairman and founder of Navellier & Associates, in a rating. “They might only raise fares one more time on September 21, and then it will be done.”
Meanwhile, Target stock fell 2.7% as the retail giant missed its profit forecast due to large-scale markdowns needed to move excess inventory.
Here’s where the U.S. indices stood as the market closed at 4:30 p.m. Wednesday:
Economist Nouriel Roubini told Bloomberg TV that investors hoping for a strong pivot from the Fed to easing are “delusional” as rising prices outpace central bank action.
And economist Henry Kaufman echoed similar sentiments, telling the Financial Times that Fed Chairman Jerome Powell needed to go further and “shock the market” to get inflation under control.
Elsewhere, Russia expects gas export prices to jump 140% from 2021 levels as the Kremlin limits flows to Europe via the Nord Stream pipeline. Prices have skyrocketed since Russia invaded Ukraine in February.
Crude oil extended its gains, with West Texas Intermediate climbing 1.12% to $87.48. International benchmark Brent was up 0.70% at $92.99.
Gold fell 0.49% to $1,766.70 an ounce. The yield on 10-year Treasury bills gained 6.9 basis points to 2.893%.
Bitcoin lost 0.98% to $23,325.06.