U.S. stock index drops as Fed discusses cut in stimulus this year. On Wednesday, major U.S. stock indexes declined for a second day as Federal Reserve revealed their discussion about reducing stimulus.
The Dow Jones Industrial Average slipped 382.59 points, or about 1.1%, to 34,960.69. The S&P 500 fell nearly 1.1% to 4,400.27. The two averages snapped 5-day winning streaks in the prior session. The Nasdaq Composite traded down 0.9% to 14,525.91.
The Fed published its meeting minutes for insights into tapering plans, revealing discussions about cutting its monthly bond-buying program this year.
Investors also walk through more earnings reports from leading retailers.
Shares of Lowe dropped 9.5% after the home improvement company’s earnings last quarter surpassed expectations.
Housing starts tumbled 7% in July to 1.534 million units, below economists’ forecasts.
TJX’s shares jumped nearly 5.6% following a better-than-expected quarterly earnings report.
Shares of Target declined about 2.8% even after the retailer beating on second-quarter earnings. The company’s profit and revenue exceeded expectations. The company also increased its projections for the second half of the year.
“In the short run, the market is going to remain focused on growth and delta variant concerns, but as we move past those challenges, the good news about the economy and job market should give investors a renewed boost of confidence and that is what will drive the market to new highs before the end of the year,” Chris Zaccarelli, chief investment officer for Independent Advisor Alliance, said.