U.S. stocks trim losses as Fed minutes reveal concern about hiking too aggressively


U.S. stocks trimmed their losses on Wednesday following the release of minutes from the Federal Reserve’s July meeting, with the Dow Jones Industrial Average DJIA, -0.50% briefly popping back above the 34,100 level. The blue-chip gauge was off just 71 points, or 0.2%, at 34,082 in recent trade. The S&P 500 SPX, -0.72% was off 20 points, or 0.5%, at 4,284. The Nasdaq Composite COMP, -1.25% was down 105 points, or 0.8%, to 12,999. Fed minutes showed that a group of senior Fed officials disagreed with Fed Chairman Jerome Powell’s assessment that the central bank had already succeeded in raising interest rates back to “neutral.” On the other hand, “many” Fed officials said they were worried about the risk that the Fed might be overly aggressive and cause more damage to the economy than would be necessary. Ian Lyngen, head of U.S. rates strategy at BMO Capital Markets, said in emailed commentary that the minutes were “marginally less hawkish” and implied that a 75 basis point hike in September shouldn’t be the market’s base case.

This article was originally published by Marketwatch.com. Read the original article here.

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