September 27, 2022

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The Dow closed lower on Wednesday to end a 5-day winning streak, and Wall Street studies new retail data

The Dow closed lower on Wednesday to end a 5-day winning streak, and Wall Street studies new retail data

Stocks fell on Wednesday as the rally on Wall Street that has driven prices higher since mid-June appears to have lost steam as traders evaluated the latest retail data and minutes from the Federal Reserve.

The Dow Jones Industrial Average fell 171 points, or 0.5%, while the S&P 500 and Nasdaq Composite were down 0.69% and 1.15%, respectively.

Stocks were volatile like Traders rated the last minuteswhich showed that the Federal Reserve will continue its aggressive hiking campaign until it can tame inflation.

“Participants continued to expect that continued increases in the target range for the federal funds rate would be appropriate to achieve the Committee’s objectives,” the minutes stated. “With inflation remaining well above the commission’s target, participants felt that a transition to a restrictive policy stance was required to fulfill the commission’s legislative mandate to promote maximum employment and price stability.”

At the same time, the central bank also indicated that it may soon slow the pace of its tightening, while also acknowledging the dire state of the economy and the downside risks to GDP growth.

“Participants considered that as the monetary policy stance tightens further, it would likely become appropriate at some point to slow the pace of policy rate increases while assessing the effects of cumulative policy adjustments on economic activity and inflation,” the minutes said.

Meanwhile, merchants continued to comb corporate earnings from the retail sector that began with Walmart and Home Depot on Tuesday. Target stocks fell After the retailer posted widely-beating earnings as it grappled with excess inventory, while Lowe’s trading higher Although a mixed quarter.

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Retail sales data released on Wednesday remained unchanged in July Center Declining car sales and gasoline priceseven though consumers are spending more online.

“It’s no surprise to see the market take a breather from the summer rally it’s been headed for,” said Chris Larkin, managing director of trading at E-Trade Financial. “…the market is looking for any sign that a slowdown in interest rate hikes, which appears to have fueled the recent rally, is coming. Investors should remain agile and continue to anticipate volatility because we may not be out of the woods yet.”

Warranty Revenues have also gone up on Wednesday, with 10-year treasury bonds The latest rise of more than 6 basis points at 2.88%, as recession fears and uncertainty over the Fed rate hike path persisted. The move dragged down growth stocks such as technology.

Wednesday’s moves came after the Dow posted gains for the fifth consecutive day.