Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA, June 30, 2022. REUTERS / Brendan McDermid
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- US services sector index at least two years -ISM survey
- Rivian wins as electric vehicle deliveries increase
- Indices: Dow down 0.33%, S&P down 0.14 %%, Nasdaq flat
July 6 (Reuters) – US stock indexes traded higher on Wednesday, but remained virtually unchanged in the face of the Federal Reserve issuing the minutes of its last meeting, while investors waited. new clues about interest rate policy and the fight against central bank inflation.
Following a brutal sell-off in global stock markets during the first half of the year, nervous investors are closely monitoring central bank shares as they try to assess the impact of aggressive rate hikes on global growth.
With recent comments from Fed policymakers, most traders are considering another 75 basis point increase later in July.
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Wednesday’s trade was hectic, and the three main benchmarks experienced periods in both positive and negative territory. The hour before the Fed minutes were to be posted at 2pm EDT (1800 GMT), however, they remained close to parity, with the Dow off marginally.
Investors are focusing on the minutes of the June meeting of the Federal Open Market Committee where it raised the political rate by three-quarters of a percentage point.
Ukraine’s conflict, decades-high inflation, and the Fed’s orientation away from easy money policy pushed the S&P 500 (.SPX) to its sharpest percentage drop in the first half since 1970. benchmark index has dropped nearly 20% so far this year.
The 10-year U.S. Treasury yield peaked after falling earlier in the day to a five-week low.
A key portion of the yield curve was first reversed in three weeks on Tuesday, reflecting growing anxiety in the world’s largest bond market by the risks of recession.
“It’s a tug-of-war between people who believe the economy will stay strong enough and won’t go into recession, and those who believe we’re already in one,” said Art Hogan, chief market strategist at B. Riley .
A survey by the Institute for Supply Management showed that the U.S. service industry slowed less than expected in June, but a measure of employment in services fell to a two-year low. which suggests that labor demand may be declining. Read more
Another report showed that job offers in the United States fell less than expected in May, pointing to a still tight labor market. The most comprehensive June non-farm payroll report will be released on Friday. Read more
Oil prices have fallen in recent days as growing fears of destroying demand from a possible global recession outweighed supply concerns. The S&P 500 energy index (.SPNY) fell 2.9%, leading the falls among the 11 subsectors.
At 13:30 EDT, the Dow Jones Industrial Average (.DJI) fell 103.08 points, or 0.33%, to 30,864.74, the S&P 500 (.SPX) lost 5.18 points, or 0.14%, to 3,826.21 and Nasda (. IXIC) was flat at 11,321.69.
Uber Technologies Inc (UBER.N) and DoorDash Inc (DASH.N) fell 3.6% and 7.1%, respectively, after Amazon.com Inc (AMZN.O) agreed to take a 2% stake a Just Eat Takeaway.com (TKWY). .AS) Grubhub, the struggling food delivery business in the United States. Read more
Rivian Automotive Inc. (RIVN.O) gained 11.8% after electric vehicle manufacturer’s deliveries nearly quadrupled as production increased. Read more
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Report by Amruta Khandekar and Bansari Mayur Kamdar in Bangalore and David French in New York Edition by Shounak Dasgupta and Matthew Lewis
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