US stocks lose ground as traders await Fed minutes

US stock indexes fell late Wednesday morning as investors took a cautious stance ahead of the release of minutes from the Federal Reserve’s June monetary policy meeting.

How stock indices are traded
  • The Dow Jones Industrial Average DJIA,
    lost 100 points, or 0.3%, to around 30,864;

  • The S&P 500 SPX,
    fell 14 points, or 0.4%, to around 3,818.

  • The Nasdaq Composite COMP,
    fell 38 points, or 0.3%, to 11,283.

On Tuesday, the Dow fell 129 points, or 0.4%, while the S&P 500 SPX was down
was up 0.1% and the Nasdaq Composite rose 1.7%.

What moves the markets

Evidence is mounting that US economic growth is slowing. An ISM barometer of business conditions at service-oriented businesses like restaurants, hotels and retailers fell slightly to 55.3% in June, hitting its lowest level in two years. A value above 50% indicates an increase in activity.

“Today, like most days lately, I think investors are really holding on to any little data point or news headline that gives them insight into where the market could potentially go from here,” said Lindsey Bell, Chief Markets and Money Strategist at Allies.

“A lot of the discussion lately has been about this recession narrative, especially with the yield curve inverting for the third time this year… The market just stays on edge because there’s just a significant level of uncertainty,” Bell said in an interview.

Treasuries were stable on Wednesday morning, although the 2-year yield continued to trade above the 10-year yield.

In light of interest rates, traders will also be keeping an eye on the minutes of the June Federal Reserve meeting, which are due to be released at 2pm EST.

“If there’s potential or hesitation from some Fed officials saying we may need to do more, with maybe 100 basis points (rate hike) on the table, I think those are really going to be the key areas to look at.” have to focus on,” Bell said.

“When I’m thinking about how to navigate this market now, it’s really focused on having a balanced portfolio because we’re in this wait and wait way of how the economic environment is going from here and how Fed policy evolves,” zu Glocke said. “You have to be a bit exposed to everything.”

Earlier, Asia provided a somewhat sour response to Wall Street’s overnight rebound. Japan’s Nikkei 225 NIK,
lost 1.2% and China’s Shanghai Composite SHCOMP,
lost 1.4% after it was announced Beijing was once again battling COVID-19 outbreaks in several regions of the country.

company in focus
  • Kornit Digital Ltd.
    Shares plunged 31% on Wednesday after the company on Tuesday cut its guidance for the second quarter and indicated the third quarter might not be much better.

  • shares of Rivian Automotive Inc.
    rose 11% on Wednesday after the electric-vehicle maker reported second-quarter shipments and production that “were in line with the company’s expectations.”

  • Above
    and DoorDash
    fell behind Amazon
    partnered with Grubhub, a unit of Just Eat Takeaway JET,

  • Tesla
    was down even though the electric vehicle maker sold about 78,000 Chinese-made vehicles in June, up 142% from May, according to preliminary data released by the China Passenger Car Association on Wednesday.

Other Markets
  • Crude oil prices continued to come under pressure after falling sharply in the previous session. West Texas Intermediate Crude Oil Futures CL.1,

    fell 3.7% to $96.01 a barrel.

  • Gold Futures GC00,
    fell 1.5% to $1,783 an ounce. The yellow metal struggles at times when the dollar rises, and it fell sharply on Tuesday to see it change hands near an eight-month low.

  • silver SI00,
    slipped 0.7% to $19.00 an ounce, around the lowest price since July 2020. The gray metal also suffered on concerns that the slowdown in economic activity could reduce demand from high-tech hardware makers.

  • bitcoin BTCUSD,
    is down 1.9% to $20,070. US stocks lose ground as traders await Fed minutes

Brian Lowry

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