Wall St sheds early gains as investors assess Fed minutes



(For a Reuters live blog on U.S., UK and European stock markets, click

or type LIVE/ in a news window)

* Weekly jobless claims fall 2,000 to 250,000

* Kohl's slashes 2022 forecasts

* Indexes down: Dow 0.34%, S&P 0.12%, Nasdaq 0.07%

By Bansari Mayur Kamdar and Devik Jain

Aug 18 (Reuters) - Wall Street's main indexes struggled for direction and pared early gains Thursday as investors scrutinize the Federal Reserve's minutes of the July meeting for a "less hawkish" tone against the backdrop of data that had eased inflation worries.

While the minutes did not clearly hint at the pace of rate increases, it showed policymakers committed to raising rates to tame inflation even as they start to acknowledge the risk they might go too far and curb economic activity too much.

Traders expect a greater chance of a 50 basis point rise in borrowing costs in September instead of a 75 basis point increase for a third time.

"The recent rally clearly has been driven by a combination of better than feared economic data and earnings," said Art Hogan, chief market strategist at B. Riley Wealth, calling the Fed's minutes as "less hawkish".

High-growth technology stocks such as Alphabet GOOGL.O and Nvidia NVDA.O rose 0.3% and 1.9%, respectively, in choppy trading as U.S. Treasury yields pulled back.

Wall Street's indexes have been gaining over the last few weeks after a softer-than-expected inflation in July, with focus now on the Fed's annual Jackson Hole symposium late next week.

Either a 50 bps or 75 bps rate hike in September would be a "reasonable" way to get short-term borrowing costs to a little over 3% by year end and a little higher than that in 2023, San Francisco Federal Reserve Bank President Mary Daly said on Thursday.

The Fed has lifted its benchmark interest rate by 225 bps so far this year to control four-decades high inflation.

Meanwhile, number of Americans filing new claims for unemployment benefits fell last week and data for the prior period was revised sharply down, suggesting the labor market remains tight despite a slowdown due to higher interest rates.

"The Fed is looking at the (labor market) and they will continue to be data dependent," said Joe Saluzzi, co-manager of trading at Themis Trading in Chatham, New Jersey.

"We've had big gains, the market is digesting that at this point. Right now, we're in a holding pattern and some folks are worried that we're going to see another low."

At 12:44 p.m. ET, the Dow Jones Industrial Average .DJI was down 115.86 points, or 0.34%, at 33,864.46, the S&P 500 .SPX was down 5.08 points, or 0.12%, at 4,268.96, and the Nasdaq Composite .IXIC was down 8.79 points, or 0.07%, at 12,929.34.

The tech-heavy Nasdaq .IXIC has bounced nearly 22% from its mid-June lows, while the benchmark S&P 500 .SPX has risen 17%, supported by upbeat quarterly results.

However, retail earnings have been mixed so far. Encouraging reports from Walmart WMT.N and Home Depot HD.N earlier this week were offset by Target's TGT.N profit slump, which dragged the retail sector .SPXRT down 1.2% in the previous session.

Kohl's Corp KSS.N slid 5.5% after the retailer cut its full-year sales and profit forecasts.

Verizon Communications Inc VZ.N declined 2.6% after MoffettNathanson downgraded the telecom operator's shares.

Declining issues outnumbered advancers for a 1.07-to-1 ratio on the NYSE and a 1.25-to-1 ratio on the Nasdaq.

The S&P index recorded four new 52-week highs and 29 new lows, while the Nasdaq recorded 47 new highs and 50 new lows.


Reporting by Bansari Mayur Kamdar and Devik Jain in Bengaluru; Editing by Shounak Dasgupta

免責聲明: XM Group提供線上交易平台的登入和執行服務,允許個人查看和/或使用網站所提供的內容,但不進行任何更改或擴展其服務和訪問權限,並受以下條款與條例約束:(i)條款與條例;(ii)風險提示;(iii)完全免責聲明。網站內部所提供的所有資訊,僅限於一般資訊用途。請注意,我們所有的線上交易平台內容並不構成,也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。

所有缐上交易平台所發佈的資料,僅適用於教育/資訊類用途,不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議,或是交易價格紀錄,或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。

本網站的所有XM和第三方所提供的内容,包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接,皆爲‘按原狀’,並作爲一般市場評論所提供,而非投資建議。請理解和接受,所有被歸類為投資研究範圍的相關内容,並非爲了促進投資研究獨立性,而根據法律要求所編寫,而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊,相關詳情請點擊 這裡查看。

我們運用 cookies 提供您最佳之網頁使用經驗。更改您的cookie 設定跟詳情。

風險提示:您的資金存在風險。槓桿商品並不適合所有客戶。請詳細閱讀我們的風險聲明