: Stocks post back-to-back loss after Fed minutes point to lingering inflation and rate risks
U.S. stocks posted back-to-back losses Wednesday after Federal Reserve minutes of its July meetings showed concerns about inflation revving back up. The Dow Jones Industrial Average DJIA fell about 180 points, or 0.5%, ending near 34,765, according to preliminary FactSet data. The S&P 500 index SPX gave up 0.8% and the Nasdaq Composite Index COMP closed 1.2% lower. All three benchmarks booked back-to-back loses, while the S&P 500 ending at its lowest level in more than a month. Minutes of the Fed’s July 25-26 meeting said “most participants continue to see significant upside risks to inflation, which could require further tightening of monetary policy.” The benchmark 10-year Treasury rate BX:TMUBMUSD10Y jumped to 4.258%, the highest since June 13, 2008, according to Dow Jones Market Data. Jamie Cox, managing partner at the Harris Financial Group said, “The Fed wants to talk tough on inflation, but it’s obvious they are done with rate hikes,” in emailed comments. “These minutes don’t signal a pivot back to large rate hikes.”
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