US: Stocks fall as traders assess Fed meeting minutes

    • The Dow Jones Industrial Average lost 0.8 per cent to 37,430.19, and the broad-based S&P 500 retreated 0.8 percent as well to 4,704.81 on Wednesday.
    • The Dow Jones Industrial Average lost 0.8 per cent to 37,430.19, and the broad-based S&P 500 retreated 0.8 percent as well to 4,704.81 on Wednesday. PHOTO: AFP
    Published Thu, Jan 4, 2024 · 06:08 AM

    WALL Street stocks continued a year-opening slump on Wednesday, with all three key indices pulling back amid uncertainty over when the US central bank might start lowering interest rates.

    The Dow Jones Industrial Average lost 0.8 per cent to 37,430.19, and the broad-based S&P 500 retreated 0.8 percent as well to 4,704.81.

    The tech-focused Nasdaq Composite Index plunged a further 1.2 per cent to finish the day at 14,592.21 after a 1.6 per cent drop on Tuesday.

    The market “got way ahead of itself” in December, said Hans Olsen, chief investment officer at Fiduciary Trust.

    “There needs to be some sort of consolidation of this run, in order for it to last,” he added, noting that to forge ahead without fundamental changes is “not healthy and not durable.”

    On Wednesday, survey data on the US manufacturing sector showed that it remains in contraction, although details suggested that pressures from inflation were easing.

    Meanwhile, minutes from the Federal Reserve’s most recent policy meeting indicated that officials expect interest rates may need to remain high “for some time” to combat stubborn inflation.

    The document did not go into details of discussions on when rate cuts might begin, likely weighing on investor enthusiasm.

    Among individual companies, shares of Apple slid 0.8 per cent, while other tech firms Nvidia and Facebook parent Meta Platforms slumped as well. AFP

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