US close: Stocks fall as Fed minutes stoke recession fears
Stocks on Wall Street closed in the red on Wednesday, with all three major indexes ending lower, after the latest Federal Reserve meeting minutes raised concerns over the possibility of economic recession.
The Dow Jones Industrial Average slipped 0.11% to close at 33,646.50, while the S&P 500 dropped 0.41% to 4,091.95, and the Nasdaq Composite declined 0.85% to finish trading at 11,929.34.
In the currency market, the dollar was in the red against its major trading pairs, last sitting 0.03% lower on sterling at 80.09p.
It slipped 0.02% on the common currency to trade at 90.96 euro cents, and it weakened 0.01% against the yen to change hands at JPY 133.12.
“The US dollar slid back to its early April low on the back of softer-than-expected US inflation data, with euro-dollar being one of the biggest benefactors as the cross rallied to the $1.10 mark and neared its February peak,” noted IG senior market analyst Axel Rudolph.
“[This was] boosted by hawkish comments from ECB governing council member and Austrian Central Bank chief Robert Holzmann.
“In a newspaper report he said that the inflation outlook alone would warrant another 50 basis point rate hike in May.”
Fed minutes stoke recessionary fears, while inflation slows in March
At the top of the agenda were the latest Federal Reserve meeting minutes released late in the session, further fanning the flames of recessionary concern.
They revealed that "many" officials were considering lowering their estimates of the peak interest rate needed to bring consumer inflation under control, as the effects of stress in the banking sector became evident.
Fed staff meanwhile were projecting a "mild recession" in the US economy later in the year, with a recovery over the next two years.
The release of the Fed minutes came after the news earlier that inflation growth weakened more than anticipated in March.
According to the Department of Labor, the consumer price index rose 0.1% on the month in March, with the annual rate of gain down to 5.0%, compared to the 5.1% economists had pencilled in.
Price rises for food remained unchanged, while energy costs declined by 3.5%.
Used car and truck prices dropped by 0.9%, new vehicle prices were up by 0.4%, and apparel prices increased by 0.6%.
Medical care services prices fell by 0.5%.
Finally on the economic front, US mortgage applications rose 5.3% in the week ending on 31 March according to a release from the Mortgage Bankers Association, with applications to purchase a home jumping 7.8%.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances fell ten basis points to 6.3%.
Tessco Technologies leaps on takeover deal, American Airlines loses lift
In equities, wireless technology firm Tessco Technologies soared 87.02% after it announced an acquisition deal with GetWireless and Alliance Corporation to take it over at a premium of 91.5% to its share price.
On the downside, legacy carrier American Airlines Group descended 9.22% after it issued a pessimistic outlook on its profits.
The company was grappling with rising costs and weaker consumer demand for discretionary travel spending amid its downbeat forecast.
Reporting by Josh White for Sharecast.com.
Dow Jones - Risers
Dow Chemical Co. (DOW) $56.85 1.25%
Merck & Co. Inc. (MRK) $113.75 1.12%
Goldman Sachs Group Inc. (GS) $329.98 0.88%
Salesforce.Com Inc. (CRM) $189.97 0.76%
Chevron Corp. (CVX) $169.82 0.35%
Nike Inc. (NKE) $123.66 0.29%
McDonald's Corp. (MCD) $285.30 0.29%
Procter & Gamble Co. (PG) $151.07 0.27%
Microsoft Corp. (MSFT) $283.49 0.23%
Coca-Cola Co. (KO) $62.69 0.18%
Dow Jones - Fallers
Walt Disney Co. (DIS) $97.94 -2.47%
Walgreens Boots Alliance, Inc. (WBA) $35.69 -1.71%
American Express Co. (AXP) $159.29 -1.57%
International Business Machines Corporation (CDI) (IBM) $128.54 -1.44%
Home Depot Inc. (HD) $290.44 -1.13%
Intel Corp. (INTC) $32.02 -1.02%
Cisco Systems Inc. (CSCO) $50.11 -1.01%
Amgen Inc. (AMGN) $249.50 -0.77%
Verizon Communications Inc. (VZ) $39.20 -0.63%
Walmart Inc. (WMT) $149.34 -0.49%
S&P 500 - Risers
Nektar Therapeutics (NKTR) $0.94 10.89%
Fortive Corporation (FTV) $66.83 2.74%
Estee Lauder Co. Inc. (EL) $247.05 2.19%
Eaton Corporation plc (ETN) $162.22 2.15%
Pioneer Natural Resources Co. (PXD) $225.10 2.14%
Coty Inc. Class A (COTY) $12.13 2.11%
Parker-Hannifin Corp. (PH) $324.52 2.06%
LyondellBasell Industries (LYB) $97.21 1.83%
Raytheon Technologies Corporation (RTX) $101.52 1.81%
Fluor Corp. (FLR) $30.44 1.67%
S&P 500 - Fallers
Dish Network Corp. (DISH) $8.08 -9.42%
American Airlines Group (AAL) $13.00 -9.22%
Gap Inc. (GPS) $9.54 -7.17%
United Airlines Holdings Inc (UAL) $41.44 -6.50%
Nordstrom Inc. (JWN) $15.79 -6.01%
Norwegian Cruise Line Holdings Ltd (NCLH) $12.73 -5.98%
Vornado Realty Trust (VNO) $14.81 -5.43%
Carmax Inc. (KMX) $68.58 -5.03%
Hanesbrands Inc. (HBI) $4.98 -4.96%
Macy's Inc. (M) $17.53 -4.83%
Nasdaq 100 - Risers
Check Point Software Technologies Ltd. (CHKP) $132.82 1.58%
PACCAR Inc. (PCAR) $72.11 1.51%
Cintas Corp. (CTAS) $453.94 0.82%
Biogen Inc (BIIB) $285.79 0.74%
O'Reilly Automotive Inc. (ORLY) $877.35 0.72%
Vertex Pharmaceuticals Inc. (VRTX) $326.38 0.47%
Verisk Analytics Inc. (VRSK) $192.17 0.38%
Monster Beverage Corp (MNST) $52.47 0.36%
Electronic Arts Inc. (EA) $126.13 0.36%
Microsoft Corp. (MSFT) $283.49 0.23%
Nasdaq 100 - Fallers
Qurate Retail Inc. (QRTEA) $0.83 -12.77%
Dish Network Corp. (DISH) $8.08 -9.42%
American Airlines Group (AAL) $13.00 -9.22%
JD.com, Inc. (JD) $36.95 -7.65%
Trip.com Group Limited (TCOM) $35.26 -4.91%
Henry Schein Inc. (HSIC) $82.17 -3.58%
Tesla Inc (TSLA) $180.54 -3.35%
Charter Communications Inc. (CHTR) $343.28 -3.00%
Applied Materials Inc. (AMAT) $113.16 -2.77%
QUALCOMM Inc. (QCOM) $120.27 -2.67%