Register now to get free unlimited access to Reuters.com
(Reuters) – Wall Street’s main indexes fell on Wednesday as growth stocks came under pressure after bond yields surged minutes before the Federal Reserve’s July meeting, while weak results from Target pushed the retail sector lower.
Retail earnings have been mixed so far this week, with Target Corp (TGT.N) It fell 3.3% after reporting a 90% drop in quarterly profit as inflation-hit customers curbed spending on discretionary goods. Read more
Retail S&P 500 (.SPXRT) It fell 1.7% after jumping 1.9% in the previous session on the back of encouraging quarterly earnings from Walmart. (WMT.N) The Home Depot Inc (HD.N).
Register now to get free unlimited access to Reuters.com
The data showed that US retail sales were unchanged in July as lower gasoline prices affected receipts at service stations. However, consumer spending appears to be faltering, which could further alleviate fears that the economy was in a recession. Read more
High-growth and technology stocks like Amazon.com Inc (AMZN.O) And Nvidia Inc (NVDA.O) It fell more than 2.5% each as US Treasury yields rose for the second consecutive session.
Investors expect that the Fed minutes will likely reaffirm the central bank’s focus on raising interest rates until inflation is under control. Read more
“We have a long way to go from 8% inflation to a place where rates are normal,” said Charlie Ryan, portfolio manager at Evercore Wealth Management.
“The biggest risk is what we will do if we get bad inflation data this month without the Fed meeting.”
Most of the major S&P 500 sectors were trading in the red by midday, while energy stocks were trading (.SPNY) It rose, tracking gains in crude oil prices.
The S&P 500 has recovered nearly 17% from its lows in mid-June, with the latest support coming from hopes that inflation has peaked after weaker-than-expected data earlier this month.
The benchmark also came close to breaking above its 200-day moving average on Tuesday, a key technical level it hasn’t closed above since early April.
Traders see an almost equal chance of a 50 basis point and 75 basis point Fed hike in September. FEDWATCH
At 12:03 p.m. ET, the Dow Jones Industrial Average (.DJI) The Standard & Poor’s Index fell 273.08 points, or 0.80%, to 33878.93 points (.SPX) The index fell 45.89 points, or 1.07%, to 4259.31 points, and the Nasdaq Composite Index (nineteenth) It was down 217.65 points, or 1.66%, to 12884.90 points.
Upbeat corporate earnings also helped boost the recovery in US stocks this quarter, but some investors are pointing to potential risks awaiting earnings that could dampen momentum. Read more
Lowe’s Cos Inc . Home Improvement Series (LOW.N) It rose 0.8% after posting better-than-expected quarterly earnings. Read more
Declining issues outnumbered advanced firms by 6.06 to 1 on the New York Stock Exchange and by 3.96 to 1 on the Nasdaq.
The S&P recorded three new 52-week highs and 29 new lows, while the Nasdaq recorded 24 new highs and 41 new lows.
Register now to get free unlimited access to Reuters.com
Additional reporting by Bansari Mayor Kamdar, Devik Jain and Sruthi Shankar in Bengaluru; Edited by Shunak Dasgupta
Our criteria: Thomson Reuters Trust Principles.
More Stories
Bank of Japan decision, China PMI, Samsung earnings
Dow Jones Futures: Microsoft, MetaEngs Outperform; Robinhood Dives, Cryptocurrency Plays Slip
Strategist explains why investors should buy Mag 7 ‘now’