Wall Street ends lower after Fed minutes highlight tough recovery
By Gertrude Chavez-Dreyfuss NEW YORK (Reuters) - Wall Street finished lower on Wednesday after the Federal Reserve raised concerns that the U.S. economic recovery from the devastating effects of the pandemic faced a highly uncertain path
By Gertrude Chavez-Dreyfuss
NEW YORK (Reuters) - Wall Street finished lower on Wednesday after the Federal Reserve raised concerns that the U.S. economic recovery from the devastating effects of the pandemic faced a highly uncertain path.
In the minutes of the July Fed meeting, the policy committee said that the swift rebound in employment seen in May and June had likely slowed and that additional "substantial improvement" in the labor market would hinge on a "broad and sustained" reopening of business activity.
The Fed also ruled out for now more dovish monetary policy measures such as yield-curve control.
"The Fed was cautious in the minutes and has been over the last month," said Mike O’Rourke, chief market strategist, at Jones Trading. "I think the fact that the Fed was not too warm on the yield-curve control and some of the extreme measures investors may have liked to see was a concern."
The Dow Jones Industrial Average <.DJI> closed 85.19 points lower, or 0.31%, to 27,692.88, the S&P 500 <.SPX> lost 14.93 points, or 0.44%, to 3,374.85 and the Nasdaq Composite <.IXIC> dropped 64.38 points, or 0.57%, to 11,146.46.
Earlier in the session, the S&P 500 hit an intraday record of 3,399.54 and Nasdaq of 11,257.422.
Losses on Wall Street came after Apple Inc
The company's stock was boosted by expectations of long-term success from the country's biggest tech names in a post-coronavirus world.
Strong results from retailers Target
The S&P 500 closed at a record on Tuesday in what has been its fastest recovery ever from a bear market. The Nasdaq recouped its losses from the pandemic sell-off two months ago, but the Dow is still nearly 5% below February's record closing high.
On U.S. exchanges 8.61 billion shares changed hands, compared with the 9.72 billion average for the last 20 sessions
Declining issues outnumbered advancing ones on the NYSE by a 1.62-to-1 ratio; on Nasdaq, a 1.23-to-1 ratio favored decliners.
The S&P 500 posted 26 new 52-week highs and no new lows; the Nasdaq Composite recorded 74 new highs and 25 new lows.
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Medha Singh and Ambar Warrick in Bengaluru; Editing by Cynthia Osterman)
This story has not been edited by Firstpost staff and is generated by auto-feed.
By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States
BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.