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

Wall Street ends lower after Fed minutes

Stock Markets Apr 06, 2022 07:50PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., March 30, 2022. REUTERS/Brendan McDermid 2/2

By Lewis Krauskopf, Bansari Mayur Kamdar and Praveen Paramasivam

(Reuters) - Wall Street's main indexes fell on Wednesday, with steep declines in tech and other growth stocks, after minutes from the Federal Reserve's March meeting sharpened investors' focus on the U.S. central bank's plans to fight inflation.

The tech-heavy Nasdaq logged a decline of over 2% for a second straight day.

Minutes of the Fed's March 15-16 meeting showed policymakers rallying around plans to cut the central bank's massive balance sheet as soon as next month.

Wall Street's main indexes already had been solidly lower ahead of the minutes' release, building on declines from a day earlier when Fed Governor Lael Brainard's comments raised concerns about more aggressive Fed action to fight inflation.

"The Fed is determined to rein in inflation, and we just hope and pray that there will there will be a soft landing of the economy and not a hard landing that sends us into a recession," said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder.

The Dow Jones Industrial Average fell 144.67 points, or 0.42%, to 34,496.51, the S&P 500 lost 43.97 points, or 0.97%, to 4,481.15 and the Nasdaq Composite dropped 315.35 points, or 2.22%, to 13,888.82.

The technology and consumer discretionary sectors both fell about 2.6%, while the S&P 500 growth index dropped about 2%.

Defensive sectors gained, led by a 2% rise for utilities and a 1.6% increase for healthcare and real estate.

Wall Street's indexes already had been down sharply for a second straight day before the closely watched minutes, as investors continued to digest Brainard's remarks from Tuesday.

Brainard said she expected a combination of interest rate increases and a rapid balance sheet runoff to bring U.S. monetary policy to a "more neutral position" later this year.

"She is one of the more dovish members of the FOMC and so for her to come out as aggressively in stamping out inflation pressures with really more aggressive rate tightening and policies, I think that took the market off guard a little bit and I think you are seeing that continue today," said Anthony Saglimbene, global market strategist at Ameriprise.

The prospect of a more hawkish Fed led to a rocky start to the year for equities, and in particular tech and growth shares whose valuations are more vulnerable to higher bond yields. The Ukraine crisis has added to concerns, particularly about worsening inflation as commodity prices spike.

In company news, JetBlue Airways (NASDAQ:JBLU) shares fell 8.7% as it mounted a vigorous defense of its unsolicited $3.6 billion bid to acquire ultra-low-cost carrier Spirit Airlines (NYSE:SAVE).

Declining issues outnumbered advancers on the NYSE by a 2.76-to-1 ratio; on Nasdaq, a 2.56-to-1 ratio favored decliners.

The S&P 500 posted 41 new 52-week highs and 22 new lows; the Nasdaq Composite recorded 41 new highs and 202 new lows.

About 12.6 billion shares changed hands in U.S. exchanges, compared with the 13 billion daily average over the last 20 sessions.

Wall Street ends lower after Fed minutes
 

Related Articles

Rouble, Russian stocks slip as oil prices fall
Rouble, Russian stocks slip as oil prices fall By Reuters - Aug 17, 2022

(This content was produced in Russia where the law restricts coverage of Russian military operations in Ukraine) MOSCOW (Reuters) - Russian stocks slipped from multi-week highs on...

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 (8)
Jose Cabreja
Jose Cabreja Apr 06, 2022 9:20PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
monthly balance sheet cut $95B($9Trillion balance)🤣🤣🤣 what a joke.. that's pocket $ for the FED
Ross Dre
Ross Dre Apr 06, 2022 3:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I took a little bit of both party’s money today but it was easiest heisting the bulls money per usual lately.
Maria Kenny
Maria Kenny Apr 06, 2022 3:23PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
good tech stock with good long outlooks like LRCX have pe ratios less than UNH.
Dominic Mazoch
Dominic Mazoch Apr 06, 2022 1:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
In the computer age, it takes THIS LONG to get minutes And:1. Fed BOD members should not bevallowed to speak outside FED or Congrddional forums.2. For transparency, FED meetings need to be on CSPAN, and the stokevexchangescoh bank holiday.
Dominic Mazoch
Dominic Mazoch Apr 06, 2022 1:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
error: Stock Market needs to be on a bank holiday.
Marco cuevas
Marco cuevas Apr 06, 2022 1:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Fed is a racket!!!
Dominic Mazoch
Dominic Mazoch Apr 06, 2022 12:41PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
End the Fed.
Raja Tampan
Raja Tampan Apr 06, 2022 12:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Don't worry, it's just misunderstanding. Next week will be bullish again.
First Last
First Last Apr 06, 2022 12:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Btd!
snow boy
Snowboy123 Apr 06, 2022 12:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The question is, how deep the market dives until your 'next week'
Ali Gural
Ali Gural Apr 06, 2022 12:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Inflation data will come hot on 12th of April I believe. More dips likely.
Trader Trader
Trader Trader Apr 06, 2022 11:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Thank you FED
 
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
Continue with Google
or
Sign up with Email