Wall Street Extends Losses Following Fed’s Minutes

The benchmark indices in the New York Stock Exchange (NYSE) finished lower for the second consecutive session on Wednesday, with Wall Street responding to the Federal Reserve’s July meeting minutes that showed a path to cut back the massive asset purchases before the end of 2021 or in January.

The Dow Jones Industrial Average lost 382.59 points, or 1.1%, to close at 34,960.69 points.

The S&P 500 declined by 47.81 points, or 1.1%, to settle at 4,400.26 points.

This is the worst loss for both indices in a month, after ending a five-session record-breaking streak on Tuesday.

Meanwhile, the Nasdaq Composite Index maintained losses and settled lower by 130.27 points, or 0.9%, at 14,525.91 points.

The Fed’s latest meeting minutes showed concerns over persistent inflationary pressures for longer than previously expected.

In Europe, the pan-continental STOXX 600 index edged higher by 0.14% to finish at 474.42 points, before the Fed released their July meeting minutes with the market digesting mixed inflation readings.

In the UK, the inflation rate declined to 2% last month, while consumer prices in the Eurozone increased by 2.2% in July, exceeding the European Central Bank’s (ECB) target for inflation, hitting its highest since October 2018.