Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

U.S. stocks drop after Fed minutes, crypto fall

EconomyMay 19, 2021 04:51PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: People are seen on Wall Street outside the New York Stock Exchange (NYSE) in New York City, U.S., March 19, 2021. REUTERS/Brendan McDermid/File Photo

By Echo Wang

(Reuters) - Wall Street's main indexes closed lower on Wednesday after minutes from an April Federal Reserve meeting showed participants agreed the U.S. economy remained far from the central bank's goals, with some considering discussions on tapering its bond buying program.

The S&P 500 added to losses after the release of the minutes revealed a number of Fed policymakers thought that if the economy continued rapid progress, it would become appropriate "at some point" in upcoming meetings to begin discussing a tapering of the Fed's monthly purchases of government bonds, a policy designed to keep long-term interest rates low.

"There continues to be a view and a perspective from the participants, as well as the Fed staff that these inflationary pressures that are beginning to become evident will remain transitory in their view and will likely recede as we transition into 2022," said Bill Northey, senior investment director at U.S. Bank Wealth Management in Minneapolis.

Strong inflation readings and signs of a worker shortage in recent weeks have fueled fears and roiled stock markets despite reassurances from Fed officials that the rise in prices would be temporary.

All three main indexes hit their session lows in morning trade after opening sharply lower, then partially recovered before the release of the Fed minutes pressured them anew.

The Dow Jones Industrial Average fell 164.62 points, or 0.48%, to 33,896.04, the S&P 500 lost 12.15 points, or 0.29%, to 4,115.68 and the Nasdaq Composite dropped 3.90 points, or 0.03%, to 13,299.74.

Volume on U.S. exchanges was 10.70 billion shares, compared with the 10.60 billion average for the full session over the last 20 trading days.

Contributing to a risk-off mood on Wednesday, Bitcoin and ether plunged in the wake of China's move to ban financial and payment institutions from providing cryptocurrency services.

The two main digital currencies fell as much as 30% and 45%, respectively, but they significantly stemmed their losses in afternoon trading after two of their biggest backers -- Tesla (NASDAQ:TSLA) Inc chief Elon Musk and Ark Invest's chief executive officer Cathie Wood -- reiterated their support for bitcoin.

Crypto-exchange operator Coinbase Global ,miners Riot Blockchain (NASDAQ:RIOT) and Marathon Digital Holdings saw their shares sharply decline on Wednesday.

Declining issues outnumbered advancing ones on the NYSE by a 2.15-to-1 ratio; on Nasdaq, a 1.71-to-1 ratio favored decliners.

The S&P 500 posted 3 new 52-week highs and no new lows; the Nasdaq Composite recorded 34 new highs and 49 new lows.

U.S. stocks drop after Fed minutes, crypto fall
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (13)
Steve Lora
Steve Lora May 19, 2021 6:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bitcoin will only be good at Chucke Cheese soon
David David
David9 May 19, 2021 5:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
China will block crypto... without China, adoption will shattered to pieces...
Din Joekhannaz
Din Joekhannaz May 19, 2021 5:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you cannot let your government becoming too big. or else it will become authoritarian such as China..
David David
David9 May 19, 2021 5:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I don't think so... O think China has the right amount of authority... they will stop something right away that may cause harm... they don't wait around, they solve problems as they arises...
sajan varghese
sajan varghese May 19, 2021 1:11PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
bitcoin finished
Marco cuevas
Marco cuevas May 19, 2021 12:43PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Betting on crypto on pure speculation and sentiment is a fools game.  "a fool and his  money is parted"
Mitchel Pioneer
Mitchel Pioneer May 19, 2021 12:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
More intraday miracles for the laughingstock of the financial world.  Assume the proper position America.
Ronald Warren
Ronald Warren May 19, 2021 12:39PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Powell's day is coming. His God complex has put him at odds with the Father. The one who set this mathematical miracle in place. Severe correction is not far off.
ben sc
ben sc May 19, 2021 12:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
crypto crash incoming
Mark Jannetty
Mark Jannetty May 19, 2021 12:32PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
its been a great first 4 months. its going to be a long 2 years
Church of Bear Market
Church of Bear Market May 19, 2021 11:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
We have been in a downtrend since february. Just waiting for the final crash. Bitcoin may be the black swan event.
Mitchel Pioneer
Mitchel Pioneer May 19, 2021 11:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Can't have a day in the criminal US Ponzi Scheme without a miraculous, intraday "recovery" of losses.  Unlike of course "rallies" which walk a tightrope, completely uninterrupted.  Fraudulent joke.
Catharine Varady
Catharine Varady May 19, 2021 9:43AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
price increase is permanent as usd lose its value permently
Antonio Velardo
Antonio Velardo May 19, 2021 9:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sell off was started yesterday near market closure. The only connection I can see is Yellen talking of taxation.
Mox Mox
Mox Mox May 19, 2021 9:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
started days ago, not yesterday
Antonio Velardo
Antonio Velardo May 19, 2021 9:30AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mox Mox that’s right. When Biden started same topic.
talented trader
talent5566 May 19, 2021 9:28AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
minutes will be entire
C H  Abdul Kareem
C H Abdul Kareem May 19, 2021 7:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
what about the gold trading to day?
alex gallegos
alex gallegos May 19, 2021 7:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Going up fast!!
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email