ALSO READWall Street ends up on bull market's birthday; inflation fears ease Dow briefly falls more than 10 percent from high Wall St. ends up for third straight session; inflation data ahead Wall Street ends little changed on inflation skittishness Wall Street cuts gains after Fed sees rising inflation
By April Joyner
NEW YORK (Reuters) - Wall Street stocks fell on Wednesday as possible U.S. military action against Syria stoked investor concerns about geopolitical risk to the American economy and minutes from the Federal Open Market Committee sparked worries about a more hawkish view on interest-rate increases.
"There's general nervousness about what might happen with any strikes and the potential escalation of tensions with Russia," said Anwiti Bahuguna, senior portfolio manager at Columbia Threadneedle Investments in Boston.
The major Wall Street indexes edged even lower after minutes from the Federal Open Market Committee showed concern among a few of its members that rising inflation might require a faster pace of interest rate hikes than anticipated.
Members of the Federal Reserve voted unanimously to raise borrowing costs by a quarter percentage point and expressed confidence that the economy would strengthen and inflation would rise in coming months.
"The minutes were modestly negative," said John Carey, portfolio manager at Amundi Pioneer Asset Management in Boston. "People had been speculating that due to all the turbulence in the market because of geopolitical uncertainties that the Fed might consider pausing or slowing down the interest rate increases."
The Dow Jones Industrial Average <.DJI> fell 218.55 points, or 0.9 percent, to 24,189.45, the S&P 500 <.SPX> lost 14.68 points, or 0.55 percent, to 2,642.19 and the Nasdaq Composite <.IXIC> dropped 25.28 points, or 0.36 percent, to 7,069.03.
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Advancing issues outnumbered declining ones on the NYSE by a 1.03-to-1 ratio; on Nasdaq, a 1.06-to-1 ratio favoured decliners.
Volume on U.S. exchanges was 6.04 billion shares, compared with the 7.29 billion-share average for the full session over the last 20 trading days.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)