- 23 May 2024
- Posted by: Federica Montella
- Categories: eToro CopyTrader, Investing
Stocks declined on Wednesday following the release of minutes from the Federal Reserve’s recent policy meeting, which highlighted ongoing concerns about persistent inflation and increased uncertainty about when officials might reduce interest rates.
The S&P 500 fell by 0.3%, while the Nasdaq dropped 0.2%. Both indexes had reached record highs in the previous session. The Dow Jones Industrial Average decreased by 0.5%.
The minutes from the Fed’s meeting, which took place three weeks ago, indicated that policymakers were unsure about the enduring price pressures and agreed that the latest data did not convince them that inflation was moving towards the central bank’s 2% target.
Some officials expressed “a willingness to tighten policy further should risks to inflation materialise in a way that such an action became appropriate,” according to the minutes.
Investors’ expectations for rate cuts were shaken earlier this year following a series of stronger-than-expected inflation reports. However, after a decline in April, stocks have rallied this month. Slower job growth and more favourable inflation data have rekindled hopes that rate cuts could still occur this year. The S&P 500 has risen by 5.4% this month.
Investors were awaiting earnings results from Nvidia, whose shares dipped 0.5% during regular trading hours on Wednesday but rose in after-hours trading after the chip maker reported record quarterly revenue, increased its dividend, and announced a 10-for-1 stock split.
Traders view Nvidia’s results as a measure of the strength of the artificial intelligence boom that has driven the market over the past year.
