U.S. stocks remained under pressure Wednesday as the Federal Reserve released the minutes from its policy meeting concluded earlier this month where it reiterated its commitment to being patient on interest rates.
The minutes come as investors contend with tariff tensions that some fear could undercut economic expansion. Some strategists have even placed bets that signs of weakness and tepid inflation may compel the central bank to reduce rates.
How are the major benchmarks faring?
The Dow Jones Industrial Average DJIA, -0.20%[1] was off 80 points, or 0.3%, at 25,796, while the S&P 500 index SPX, -0.11%[2] fell 6 points, or 0.2%, to 2,857. The Nasdaq Composite Index COMP, -0.18%[3] slipped 25 points, or 0.3%, to 7,760.
What’s driving the market?
Minutes for the rate-setting Federal Open Market Committee’s April 30-May 1 meeting indicated that the voting members agreed the current accommodative policy can remain for now[4] and that they were comfortable with the wait-and-see approach. They were, however, split on whether higher rates were necessary if the economy continued to evolved along the predicted path while others argued that higher productivity could indicate more economic softness than the low unemployment rate suggests.
There was also some concern over the risk of tame inflation readings leading to subdued expectations of future inflation.
Investors have been struggling to drum up appetite for buying after a bruising bout of technology-led selling on Monday[5]. And while the U.S. has offered some temporary reprieve in its crackdown on Huawei Technologies, media reports said the White House could add several Chinese video surveillance firms[6] to a list of blacklisted companies over human-rights complaints.
China’s ambassador to the U.S. said late Tuesday that Beijing was open to restarting trade talks[7], but that the U.S. was indecisive. Meanwhile, President Xi Jinping has tried to rally the country[8], with a call for Chinese to start a modern “long march” to brace against the possibility of a lengthy trade conflict with the U.S.
Treasury Secretary Steven Mnuchin said in testimony before[9] the House Financial Services Committee Wednesday morning that he had spoken with Walmart Inc. WMT, +1.14%[10] Chief Financial Officer Brian Biggs, after the company said last week that higher...