Wall Street stocks fell in response to the Fed minutes, and bank stock losses increased
Summarize
・In July, Fed policy officials were divided over the necessity of additional interest rate hikes
・Quarterly earnings exceed target earnings
・Banks will expand their losses
・S&P 500 -0.36%, NASDAQ -0.44%, Dow -0.18%
details
Wall Street fell on Wednesday after the summary of the proceedings of the US Federal Reserve (Fed) was announced and it became clear at the previous meeting that central bank officials were divided over the necessity of additional interest rate hikes.
As of 3:02 p.m. Eastern time, the S&P 500 Index $S&P 500 Index(.SPX.US$fell 15.86 points (0.36%) to 4,422 points, the Nasdaq Composite Index $Nasdaq Composite Index(.IXIC.US$ It fell 59.84 points (0.44%) to 13,571.21 points, and the Dow Jones Industrial Average fell. DJI $Dow Jones Industrial Average(.DJI.US$ 61.97 points 0.18%) depreciated to 34,884.42.
Bank stocks extended losses, and the S&P 500 Bank Index fell 0.9%. Bank of America fell 1.9%, leading losses among major banks.
NVIDIA fell 0.12% after rising in the past two transactions because two securities companies further raised their stock price target stock prices ahead of the quarterly financial results of chip design companies next week.
In the S&P 500 constituent stocks, the number of falling stocks surpassed the number of rising stocks by a ratio of 1.9 to 1.
Analysts' comments
・Vice's Mike Reynolds said, “We've seen incredible upward prices so far this year. This greatly betrays expectations of a bearish response to the recession so far this year. A bit of momentum has begun to appear since that rise,” he said.
“Investors are starting to take a more sober look at the economic situation here.”
・The minutes showed, however, that most policymakers continue to prioritize fighting inflation.
・Peter Taz, president of Chase Investment Counsel in Charlottesville, Virginia, said, “I agree with the opinions of the governors in that I'm not convinced that inflation is completely in the rearview mirror.”
“The market won't know what the Fed will do from September to October.”
・Investors generally anticipate that the Fed's monetary tightening is coming to an end, but there is also strong concern that the central bank will maintain interest rates at current levels for a long period of time.
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