Home > Market update: Wall Street shows weakness ahead of Fed minutes

Market update: Wall Street shows weakness ahead of Fed minutes

  • The Dow was down 0.3%, S&P hovered -0.1%, Nasdaq -0.11%
  • Fed minutes from 2-3 November out today
  • Tech stocks look to bounce after Tuesday sell-off

Wall Street indexes are lower in early afternoon trades on Wednesday as investors await the release of Fed minutes from meetings held on 2-3 November.

The Dow Jones Industrial Average is down 0.3% as the S&P 500 hovers just in the red at 4,687.35, or 0.1% lower. The Nasdaq has added 16 points, or 0.1% although several stocks remain weak.

Looking at the S&P 500, there are gains for HP Inc (9%), Deere & Co (6%), and ETSY Inc (5%). Yesterday’s losses have kept Gap Inc and Autodesk Inc shares in the red, both of which are double digits down at 22% and 18% respectively. The Best Buy stock is also down, currently changing hands 2.2% lower from the opening price.

The markets are looking to push higher as sentiment weighed on by data on the US economy continues to hinder investors. On Wednesday, data showed that the core personal consumption expenditures (PCE) price index rose 4.1% year-over-year in October, but GDP was revised higher to 2.1% even as it missed third-quarter estimates of 2.2%.

The Fed’s plan was to taper its bond-purchasing program, tightening spending from the $120 billion per month hole, and details of these steps are likely to prove key to investors. This also comes after Fed Chair Jerome Powell was picked for a second four-year stint at the helm of the central bank, a scenario that saw technology stocks slip as the market reacted to the potential for interest hikes earlier than priced in.

Advanced Micro Devices (AMD), Xilinx (XLNX), Fiserv (FISV), and Nvidia Corp (NVDA) are all up more than 2% on the day, while Tesla Inc (TSLA.O) shares are up 1.2% as investors look to reverse recent losses despite another offloading by company CEO Elon Musk.

 At the other end of the index; Autodesk Inc (ADSK) shares are down 18% to highlight the broader weaknesses on the Nasdaq Composite.

Meanwhile, spot gold is up 0.2% to $1,787.41 per ounce as of 1640 as the investors look to the precious metal amid Germany’s warning of a potential nationwide lockdown.

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