US close: Stocks weaken as investors pore over Fed minutes

Wall Street closed on a softer note on Wednesday as investors reacted to a mixture of disappointing Chinese economic data and the release of the Federal Reserve's latest minutes.

By the close, the Dow Jones Industrial Average had dipped 0.38% to 34,288.64 points, while the broader S&P 500 index was down 0.2% at 4,446.82 points.

The tech-centric Nasdaq Composite lost 0.18% to end the session at 13,791.65 points.

In currency markets, the dollar was last 0.01% stronger on sterling at 78.72p, while it weakened 0.12% against the yen to trade at JPY 144.49.

The greenback remained steady against the euro, however, and was last changing hands at 92.13 euro cents.

“The optimism seen on Friday is now a distant memory, and stocks continue to lose ground following the return of US markets from their holiday,” said IG chief market analyst Chris Beauchamp earlier.

“As we enter the summer period, it seems volatility will increase and the price action will become much more two-way, especially when earnings season begins next week.”

Federal Reserve contemplates slower rate hike pace, Chinese economy slows

On the economic front, the release of minutes from the Fed’s June meeting suggested that officials could continue to adjust benchmark interest rates.

However, the pace at which the increases would be implemented would likely decelerate as the central bank aimed to closely evaluate the impact of its tightening, the minutes showed.

The discussions revealed that a number of members still advocated for a rate hike in their June meeting.

“Some participants indicated that they favoured raising the target range for the federal-funds rate 25 basis points at this meeting or they could have supported such a proposal,” the minutes read.

Ian Shepherdson, chief economist at Pantheon Macroeconomics, said the forward-looking policy section of the minutes offered little beyond the dot-plot and chair Jerome Powell’s comments at the press conference.

“Most members expect two more hikes but policy decisions are data-dependent,” he noted.

“The upcoming CPI and employment reports will determine whether they hike in July.

“Thereafter, it is clear that some members are becoming increasingly uncomfortable with the idea of further hikes, but they are in a minority of six, for now.”

Elsewhere, China's post-pandemic recovery looked to be losing momentum, with data published earlier indicating that the expansion of service activity had slowed down to a five-month low in June.

The Caixin/S&P Global services purchasing managers' index (PMI) - a key gauge of economic health - fell from 57.1 in May to 53.9 in June, the lowest score since January.

A PMI score of 50 demarcates economic expansion from contraction.

Adding to those concerns, the composite PMI, encompassing both manufacturing and services sectors, also experienced a decrease, falling from 55.6 in May to 52.5 in June.

UPS falls on labour dispute while Rivian and Moderna gain

In equity markets, shares in United Parcel Service (UPS) fell 2.07% as the company continued to grapple with a significant labour dispute.

A union representing nearly 350,000 UPS employees alleged that the company walked away from contract negotiations after a proposed agreement was unanimously rejected.

UPS countered that it was the union that abandoned the bargaining table, however.

On the upside, shares in electric vehicle manufacturer Rivian Automotive climbed 4.45% on the news that e-commerce titan Amazon had launched its first delivery vans produced by Rivian.

Reports suggested that more than 300 Rivian-made vans were expected to start operations on German roads in the coming weeks.

Biotechnology firm Moderna rose 1.49% after it announced a deal with officials to develop and manufacture mRNA vaccines in China, despite ongoing political tensions between Washington and Beijing.

Reporting by Josh White for Sharecast.com.

Dow Jones - Risers

Salesforce.Com Inc. (CRM) $213.78 1.21%
Boeing Co. (BA) $213.21 1.02%
Walgreens Boots Alliance, Inc. (WBA) $29.26 0.83%
American Express Co. (AXP) $175.68 0.79%
Coca-Cola Co. (KO) $61.06 0.74%
McDonald's Corp. (MCD) $296.92 0.70%
Visa Inc. (V) $239.45 0.62%
Walt Disney Co. (DIS) $89.79 0.57%
Verizon Communications Inc. (VZ) $37.49 0.54%
Amgen Inc. (AMGN) $225.88 0.39%

Dow Jones - Fallers

Intel Corp. (INTC) $32.51 -3.30%
3M Co. (MMM) $98.63 -2.48%
Nike Inc. (NKE) $107.10 -1.84%
Unitedhealth Group Inc. (UNH) $471.22 -1.39%
JP Morgan Chase & Co. (JPM) $144.67 -1.34%
Dow Chemical Co. (DOW) $52.82 -0.79%
Goldman Sachs Group Inc. (GS) $320.17 -0.77%
Chevron Corp. (CVX) $156.20 -0.66%
Cisco Systems Inc. (CSCO) $51.51 -0.60%
Apple Inc. (AAPL) $191.33 -0.59%

S&P 500 - Risers

Fidelity National Information Services Inc. (FIS) $59.80 9.32%
Global Payments Inc. (GPN) $104.75 6.33%
AES Corp. (AES) $21.45 3.47%
Crown Castle International (CCI) $117.90 3.45%
Alexandria Real Estate Equities Inc. (ARE) $116.88 3.07%
Sba Communications Corp. (SBAC) $240.97 2.97%
Meta Platforms Inc. (META) $294.37 2.92%
Consolidated Edison Inc. (ED) $92.85 2.71%
Comerica Inc. (CMA) $43.50 2.69%
Albemarle Corp. (ALB) $229.02 2.66%

S&P 500 - Fallers

Fiserv Inc. (FI) $0.00 -100.00%
Borg Warner Inc. (BWA) $43.13 -11.72%
Qorvo, Inc. (QRVO) $97.59 -5.36%
Wynn Resorts Ltd. (WYNN) $101.75 -4.57%
Foot Locker Inc. (FL) $26.05 -4.02%
Skyworks Solutions Inc. (SWKS) $107.30 -3.94%
Air Products & Chemicals Inc. (APD) $287.83 -3.86%
PVH Corp. (PVH) $84.30 -3.66%
Edwards Lifesciences Corp. (EW) $90.98 -3.57%
KLA-Tencor Corp. (KLAC) $467.91 -3.49%

Nasdaq 100 - Risers

Mercadolibre Inc. (MELI) $1,247.36 4.49%
Meta Platforms Inc. (META) $294.37 2.92%
Alphabet Inc. Class C (GOOG) $122.63 1.72%
Biomarin Pharmaceutical Inc. (BMRN) $87.27 1.61%
Verisk Analytics Inc. (VRSK) $226.05 1.60%
Alphabet Inc. Class A (GOOGL) $121.75 1.54%
Incyte Corp. (INCY) $62.99 1.47%
Intuit Inc. (INTU) $457.84 1.39%
Paychex Inc. (PAYX) $112.88 1.26%
American Airlines Group (AAL) $18.32 1.22%

Nasdaq 100 - Fallers

Fiserv Inc. (FI) $0.00 -100.00%
Qurate Retail Inc. (QRTEA) $1.02 -8.11%
Wynn Resorts Ltd. (WYNN) $101.75 -4.57%
Skyworks Solutions Inc. (SWKS) $107.30 -3.94%
KLA-Tencor Corp. (KLAC) $467.91 -3.49%
Lam Research Corp. (LRCX) $628.58 -3.44%
Intel Corp. (INTC) $32.51 -3.30%
Micron Technology Inc. (MU) $62.06 -2.88%
Vodafone Group Plc ADS (VOD) $9.25 -2.73%
Microchip Technology Inc. (MCHP) $88.43 -2.49%