The major U.S stock indexes fell for a second straight day Wednesday as investors pored through the minutes of the latest Federal Reserve meeting. What did investors learn? Central bankers believe the economy could be in a strong enough place for the Fed to begin winding down its pandemic-era stimulus measures before the end of the year.
The Dow slipped 382.59 points, or 1.1%, to 34,960.69. The S&P 500 also fell nearly 1.1% to 4,400.27. Both averages fell despite snapping five-day winning streaks in the prior session. The tech-heavy Nasdaq Composite trimmed about 0.9% lower to 14,525.91.
Fed is preparing to taper
The Federal Reserve recently published its meeting minutes from its July gathering. The minutes reveal that the Fed is dialing back its monthly bond-buying program this year.
According to the minutes, it could be “appropriate to start reducing the pace of asset purchases this year,” with the economy reaching its goal on inflation and making some progress with job growth.
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Tapering is not the only thing crashing stock prices of the Dow and other averages this week. Investors also pored through earnings reports from major retailers.
So, what do the reports say?
Shares of Lowe jumped 9.5% after the company reported better-than-expected earnings and raised its sales forecast. The home improvement company’s attempt to win business among home professionals gained traction, helping its stock to soar.
Lowe’s shares closed Wednesday up 9.59% to $199.73.
Shares of T.J. Maxx also popped nearly 5.6% after the company’s earnings last quarter topped expectations.
On the flip side, Target shares dropped about 2.8% despite beating its second-quarter earnings.
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