Stocks slide, oil dips as Fed eyes taper by year-end – Reuters

[1/5] Investors stand in front of an electronic board showing stock information on the first trading day after the week-long Lunar New Year holiday at a brokerage house in Shanghai, China, February 15,… Read more
WASHINGTON, Aug 18 (Reuters) – Wall Street ended the day lower on Wednesday, after meeting minutes showed U.S. Federal Reserve officials split on when to ease back on economic stimulus, while COVID-19's spread weighed on oil for the fifth straight day.
Wall Street hit new lows following the release of the minutes, which detailed the Fed's July 27-28 policy meeting. The Dow Jones Industrial Average (.DJI) ended the day down 1.07%, while the S&P 500 (.SPX) lost 1.07% and the Nasdaq Composite (.IXIC) fell 0.89%.
The MSCI world equity index (.MIWD00000PUS), which tracks shares in 45 nations, fell 0.58%.
The minutes fleshed out the Fed's thinking on when to taper its monthly bond purchases, and showed that Fed officials expected it is possible they could ease that stimulus this year if the economy continues to improve as expected.
However, the minutes showed officials noted that the spread of the COVID-19 Delta variant could temporarily delay the full reopening of the economy and restrain a jobs market that looms large in the Fed's thinking. read more
"Since the July FOMC meeting, the probability of a September announcement and an October, or November, start date to tapering those purchases has increased considerably, in our view, with the August payroll release coming out in early September likely to be the most important factor to tip the scales," said Bob Miller, BlackRock's Head of Americas Fundamental Fixed Income.
The ongoing spread of COVID-19 cases continued to weigh down crude, which fell for the fifth straight day on concerns of diminishing travel demand. Brent crude ended down 80 cents, or 1.2%, at $68.23 a barrel. The global benchmark has lost 11% in the last 13 trading days dating to the end of July. U.S. crude futures settled down $1.13, or 1.7%, to $65.46 a barrel. read more
U.S. Treasury yields also fell after the release of the Fed minutes, with investors eyeing a potential taper by the end of the year. Benchmark 10-year notes fell to 1.2634%, after rising to a session high of 1.300% before the minutes were disclosed.
The dollar rebounded slightly, after the minutes erased earlier gains that had put it at its highest levels since April. The dollar index , which tracks the greenback versus a basket of six currencies, rose 0.04% to 93.163.
The ongoing spread of the COVID-19 Delta variant and disappointing economic data is driving up concerns that the global economic comeback might be diminished, while turmoil in Afghanistan and a new China crackdown on the technology sector added fuel to the fire.
Data on Wednesday showed that U.S. homebuilding fell more than expected in July, the latest in several economic indicators that have missed expectations. read more
Safe-haven gold was down slightly with spot gold prices down 0.02% to $1,785.66 an ounce. U.S. gold futures had earlier settled down 0.2% at $1,784.4 per ounce.
Our Standards: The Thomson Reuters Trust Principles.
Thomson Reuters
Covers financial regulation and policy out of the Reuters Washington bureau, with a specific focus on banking regulators. Has covered economic and financial policy in the U.S. capital for 15 years. Previous experience includes roles at The Hill newspaper and The Wall Street Journal. Received a Master's degree in journalism from Georgetown University, and an undergraduate degree from the University of Notre Dame.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2023 Reuters. All rights reserved