Investing.com - U.S. stocks finished lower on Wednesday after the Federal Reserve released the minutes of its latest monetary policy meeting, which revealed more and more policymakers may be considering when to wind down monetary stimulus policies.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.77%, the S&P 500 index ended down 1.24%, while the Nasdaq Composite index fell 1.53%.
Monetary stimulus programs, which tend to push up stock prices as side effects, may be on their way out in the not-too-distant future.
The Fed is currently running a monthly USD85 billion bond-buying program, known as quantitative easing though dubbed by many as printing money out of thin air, and has said interest rates will stay near zero until the unemployment rate drops to around 6.5% from 7.9% today.
In the past, most members supported such ultra-loose policies to varying degrees, which weaken the dollar to spur recovery, though broad support may be waning now that the economy has shown more signs of recovery.
The minutes released earlier revealed that some monetary authorities may want to consider modifying stimulus policies before reaching employment and other goals in order to focus more on controlling inflation as the economy improves.
"Several participants emphasized that the Committee should be prepared to vary the pace of asset purchases, either in response to changes in the economic outlook or as its evaluation of the efficacy and costs of such purchases evolved," the minutes read.
Soft data on housing-sector groundbreaking numbers depressed stock prices as well.
In the U.S. the number of building permits issued in January rose 1.8% to 925,000 units, beating expectations for a 1.2% increase, according to the U.S. Census Bureau.
However, U.S. housing starts fell by 8.5% to 890,000 last month, surpassing expectations for a 3.6% decline to 925,000.
A separate report showed that the U.S. producer price index rose 0.2% in January after contracting 0.3% in December, according to the Labor Department.
The core producer price index, which is stripped of volatile food and energy prices, rose 0.2% in January from December, in line with expectations.
Leading Dow Jones Industrial Average performers included Merck, up 1.11%, Verizon Communications, up 0.99%, and Wal-Mart Stores, up 0.71%.
The Dow Jones Industrial Average's worst performers included Bank of America, down 3.20%, Alcoa, also down 3.20%, and UnitedHealth Group, down 2.54%.
European indices, meanwhile, finished largely lower.
After the close of European trade, the EURO STOXX 50 fell 0.83%, France's CAC 40 fell 0.69%, while Germany's DAX 30 finished down 0.30%. Meanwhile, in the U.K. the FTSE 100 finished up 0.26%.
On Thursday, the U.S. is to release its consumer price index as well as the weekly government report on initial jobless claims. The U.S. is also to publish industry data on existing home sales, a report on manufacturing activity in Philadelphia and official data on crude oil stockpiles.
At the close of U.S. trading, the Dow Jones Industrial Average finished down 0.77%, the S&P 500 index ended down 1.24%, while the Nasdaq Composite index fell 1.53%.
Monetary stimulus programs, which tend to push up stock prices as side effects, may be on their way out in the not-too-distant future.
The Fed is currently running a monthly USD85 billion bond-buying program, known as quantitative easing though dubbed by many as printing money out of thin air, and has said interest rates will stay near zero until the unemployment rate drops to around 6.5% from 7.9% today.
In the past, most members supported such ultra-loose policies to varying degrees, which weaken the dollar to spur recovery, though broad support may be waning now that the economy has shown more signs of recovery.
The minutes released earlier revealed that some monetary authorities may want to consider modifying stimulus policies before reaching employment and other goals in order to focus more on controlling inflation as the economy improves.
"Several participants emphasized that the Committee should be prepared to vary the pace of asset purchases, either in response to changes in the economic outlook or as its evaluation of the efficacy and costs of such purchases evolved," the minutes read.
Soft data on housing-sector groundbreaking numbers depressed stock prices as well.
In the U.S. the number of building permits issued in January rose 1.8% to 925,000 units, beating expectations for a 1.2% increase, according to the U.S. Census Bureau.
However, U.S. housing starts fell by 8.5% to 890,000 last month, surpassing expectations for a 3.6% decline to 925,000.
A separate report showed that the U.S. producer price index rose 0.2% in January after contracting 0.3% in December, according to the Labor Department.
The core producer price index, which is stripped of volatile food and energy prices, rose 0.2% in January from December, in line with expectations.
Leading Dow Jones Industrial Average performers included Merck, up 1.11%, Verizon Communications, up 0.99%, and Wal-Mart Stores, up 0.71%.
The Dow Jones Industrial Average's worst performers included Bank of America, down 3.20%, Alcoa, also down 3.20%, and UnitedHealth Group, down 2.54%.
European indices, meanwhile, finished largely lower.
After the close of European trade, the EURO STOXX 50 fell 0.83%, France's CAC 40 fell 0.69%, while Germany's DAX 30 finished down 0.30%. Meanwhile, in the U.K. the FTSE 100 finished up 0.26%.
On Thursday, the U.S. is to release its consumer price index as well as the weekly government report on initial jobless claims. The U.S. is also to publish industry data on existing home sales, a report on manufacturing activity in Philadelphia and official data on crude oil stockpiles.