US stocks still impacted by negative sentiment post FOMC minutes

US stocks slid during the US trading session after strong labour data spurred fears around further interest rate hikes by the US central bank, reviving concerns about the impact of those hikes on the economy.

Both the S&P 500 and the Dow Jones Industrial Average, which plummeted by as much as 500 points, were down by approximately 1.3%. The tech-focused Nasdaq 100 (^IXIC) led losses, falling 1.5%. All three major benchmarks logged losses Wednesday, after surprisingly hawkish minutes from the Fed’s June meeting showed some policymakers were reluctant to back a pause as finally decided. Almost all backed more increases in 2023.


There is a 95% chance of a raise at the July Fed meeting after new data released on Thursday indicated that the US labour market is remained strong. Private sector payrolls from ADP exceeded expectations significantly.

The data will serve as a taster for the important June jobs report, which will be released on Friday. Stocks have previously been affected by worries that the Fed’s rate hikes will send the economy into recession.