Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street broadly flat as markets await Fed minutes

Stock Markets Jul 06, 2022 13:54
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 30, 2022. REUTERS/Brendan McDermid

By Amruta Khandekar and David French

(Reuters) - U.S. stock indexes endured topsy-turvy trading on Wednesday but were broadly flat heading into the Federal Reserve publishing the minutes from its latest meeting, as investors awaited new clues on the central bank's rate policy and inflation fight.

After a brutal selloff in global equity markets in the first half of the year, nervous investors are keeping a close watch on central bank actions as they try to assess the impact of aggressive rate hikes on global growth.

With recent hawkish comments from Fed policymakers, most traders are factoring in another 75-basis-point increase later in July.

Trading on Wednesday was choppy, with all three main benchmarks experiencing periods in both positive and negative territory. In the hour before the Fed minutes were due to be released at 2 p.m. EDT (1800 GMT), however, they held close to parity, with the Dow off marginally.

Investors are focused on the minutes from the Federal Open Market Committee's June meeting where it raised the policy rate by three-quarters of a percentage point.

The Ukraine conflict, decades-high inflation and the Fed's pivot away from easy-money policy pushed the S&P 500 to its steepest first-half percentage drop since 1970. The benchmark index is down nearly 20% so far this year.

The U.S. 10-year Treasury yield hit a session high after falling earlier in the day to a five-week low. [US/]

A key part of the yield curve inverted for the first time in three weeks on Tuesday, reflecting growing angst in the world's biggest bond market over recession risks.

"It's a tug of war between people who believe the economy will remain strong enough and not go into recession, and those who believe we're already in one," Art Hogan, chief market strategist at B. Riley, said.

A survey from the Institute for Supply Management showed the U.S. services industry slowed less than expected in June, but a measure of services employment dropped to a two-year low, suggesting that demand for labor could be ebbing.

Another report showed U.S. job openings fell less than expected in May, pointing to a still-tight labor market. The more comprehensive June nonfarm payrolls report will be released on Friday.

Oil prices have slipped in recent days as growing fears of demand destruction from a possible global recession outweighed supply concerns. The S&P 500 energy index fell 2.9%, leading decliners among the 11 subsectors.

By 1:30 p.m. EDT, the Dow Jones Industrial Average fell 103.08 points, or 0.33%, to 30,864.74, the S&P 500 lost 5.18 points, or 0.14%, to 3,826.21 and the Nasdaq Composite was flat at 11,321.69.

Uber Technologies Inc and DoorDash Inc (NYSE:DASH) fell 3.6% and 7.1%, respectively, after Amazon.com Inc (NASDAQ:AMZN) agreed to take a 2% stake in Just Eat Takeaway.com's struggling U.S. food delivery business Grubhub (NYSE:GRUB).

Rivian Automotive Inc gained 11.8% after the electric-vehicle maker's deliveries nearly quadrupled as it ramped up production.

Wall Street broadly flat as markets await Fed minutes
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email