6-7-2023 (NEW YORK) U.S. stocks closed lower on Wednesday, with the Dow Jones Industrial Average falling by 0.38 percent to 34,288.64, the S&P 500 losing 0.20 percent to 4,446.82, and the Nasdaq Composite Index declining by 0.18 percent to 13,791.65, following the release of the Federal Reserve’s June meeting minutes. The minutes showed that almost all policymakers expect additional rate hikes later this year, despite deciding against a rate increase amid concerns over economic growth. The Fed’s minutes revealed that policymakers wanted to slow the speed of hikes to give the Fed more time to assess the effect of past hikes.
Seven of the 11 primary S&P 500 sectors ended in red, with materials and industrials leading the laggards. Communication services and utilities led the gainers. The Fed’s minutes contained little new information that could move markets, according to Jose Torres, senior economist with Interactive Brokers. The Federal Open Market Committee (FOMC) has an 88 percent probability of raising the benchmark interest rate by another 25 basis points at its July meeting.
The U.S. Census Bureau reported that new orders for manufactured goods increased by 0.3 percent to $578.0bn in May, the fifth gain in the past six months, following a 0.3 percent increase in April, but lower than market expectations of 0.8 percent. UBS Global Wealth Management’s analysis published that the fear of higher rates, a few disappointing economic numbers, or a shift in equity market sentiment could quickly unravel optimism about U.S. growth resilience and its underpinnings, like consumer resilience.
