2023-08-16 23:44:26
The Dow Jones New York Stock Exchange ended lower on Wednesday (Aug. 16) after minutes from the Federal Reserve meeting suggested Fed officials differed on the need for further rate hikes. This has resulted in the market becoming more concerned about the direction of the Fed’s interest rates.
The Dow Jones Industrial Average closed at 34,765.74 points, down 180.65 points or -0.52%, the S&P 500 closed at 4,404.33 points, down 33.53 points or -0.76%, and the Nasdaq Index closed at 13,474.63 points, down 156.42 points or -1.15%.
Minutes of the Fed’s July 25-26 meeting were released overnight, saying some Fed officials expressed concern that the Fed raising interest rates too much could hurt the US economy. risk While the majority of Fed committee members are still focused on controlling inflation. He said that although inflation began to show signs of slowing down But it is still above the Fed’s 2% target.
The minutes reflected uncertainties in the direction of the Fed rate. While Bank of America analysts expect Fed to hold interest rate at 5.25-5.50% at September meeting But may raise interest rates at the November meeting.
Banking stocks continued to fall after Fitch Ratings threatened to downgrade the ratings of several US banks. The S&P 500 bank index shed 1%, led by Bank of America shed 2.2%, JPMorgan down 0.42%, and Goldman Sachs shed 0.93%.
The stock index, communication services group, real estate group and luxury goods group were down more than 1%.
U.S. chipmaker Nvidia closed 1 percent lower after a strong two-day gain after two brokerage firms raised their price targets for Nvidia. Before the company releases earnings next week.
Target stocks, a major US retail company. The company rose nearly 3% after the company reported earnings per share for the second quarter of $1.80, above analysts’ expectations of $1.39.
For the economic data that was released last night The Federal Reserve said overall U.S. industrial production rose 1.0% in July, beating the 0.3% increase expected by analysts. It measures the adjustment of the factory, mining and utilities sectors.
The US Department of Commerce revealed that Housing starts rose 3.9 percent to 1.452 million units in July. This was higher than analysts’ expectations of 1.448 million units.
Today, the United States is due to release weekly jobless claims numbers. and leading economic indicators for July from the Conference Board.
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