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Wall Street moves lower after release of Fed minutes

Reuters  |  NEW YORK 

By April Joyner

(Reuters) - U.S. stocks added to losses on Wednesday after the release of minutes from the showed some concern 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.

After the FOMC minutes were released, all three Wall Street indexes moved lower, indicating investor concerns about rising interest rates.

"The minutes were modestly negative," said John Carey, at in "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."

Earlier in the day, political headlines had weighed on U.S. stocks.

U.S. warned of imminent military action in Syria, declaring missiles "will be coming."

The rising tensions sent surging, boosting nearly 1 percent. But the risk-off sentiment weighed on Treasury yields , pushing financial stocks <.SPSY> down 1.4 percent.

The <.DJI> fell 231.41 points, or 0.95 percent, to 24,176.59, the 500 <.SPX> lost 15.01 points, or 0.56 percent, to 2,641.86 and the Composite <.IXIC> dropped 26.41 points, or 0.37 percent, to 7,067.90.

shares added the most to the S&P, gaining 1.2 percent as testified before for a second day.

The shares were down about 0.5 percent at the start of Zuckerberg's testimony, but they reversed course as he pushed back on members' suggestions that users do not have enough control of their data.

fell 6.4 percent after its earnings missed expectations. The stock was the biggest decliner on the S&P, followed by peer WW Grainger's 4.2 percent drop.

Declining issues outnumbered advancing ones on the NYSE by a 1.03-to-1 ratio; on Nasdaq, a 1.15-to-1 ratio favoured decliners.

The 500 posted 6 new 52-week highs and 2 new lows; the Composite recorded 43 new highs and 23 new lows.

(Additional reporting by in Bengaluru; Editing by and Dan Grebler)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, April 12 2018. 01:19 IST
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