S&P 500 ends lower after volatile session, Fed minutes

Record ID: 1692831

  • Title: S&P 500 ends lower after volatile session, Fed minutes
  • Date: 12th October 2022
  • Summary: ATLANTA, GEORGIA, UNITED STATES (OCTOBER 12, 2022) (REUTERS) (SOUNDBITE) (English) JANNEY MONTGOMERY SCOTT, DIRECTOR OF RESEARCH, CHRIS MARINAC, SAYING: “The market's anticipating some change as the week goes on. And so, with the absence of news, it's trading sideways. So, the activity in the equity markets is very normal to me. I do think it will swing and remain volati
  • Embargoed: 26th October 2022 21:01
  • Keywords: CPI Dow Fed minutes Nasdaq S&P 500 volatile
  • Location: NEW YORK, NEW YORK + ATLANTA, GEORGIA, UNITED STATES
  • City: NEW YORK, NEW YORK + ATLANTA, GEORGIA, UNITED STATES
  • Country: US
  • Topics: Economic Events,Equities Markets,United States
  • Reuters ID: LVA002185212102022RP1
  • Aspect Ratio: 16:9
  • Story Text: The S&P 500 ended a choppy session slightly lower on Wednesday (October 12) after minutes from the last Federal Reserve meeting showed policymakers agreed they needed to maintain a more restrictive policy stance.
    The minutes of the September meeting showed many Fed officials stressed the cost of not doing enough to bring down inflation.
    At the September meeting, Fed officials raised interest rates by three-quarters of a percentage point for the third straight time in an effort to drive inflation down from 40-year highs.
    Data earlier in the day showed a surprise rise in September producer prices. The Labor Department's producer prices index rose 8.5% in the 12 months through September, slightly higher than an estimated 8.4% rise. Still, the reading was lower than an 8.7% increase in August.
    There have been increasing fears among investors that aggressive rate hikes by the Fed could tip the world's largest economy into a recession.
    Data on consumer prices Thursday is likely to be key for investors, along with the start of third-quarter earnings, which kick off with results from big banks on Friday.
    “I think it's pretty much a known fact the Fed's going to tighten the way above 4% on Fed funds. The question is, will they stop at 4.25 or 4.50 (%), or do we continue to push towards 5 (%)? That's what the CPI rate on Thursday is going to help us explain that,” said Chris Marinac, director of research at Janney Montgomery Scott.
    The S&P 500 lost 11.81 points, or 0.33%, to end at 3,577.03 points, while the Nasdaq Composite lost 9.092 points, or 0.09%, to 10,417.099.
    The Dow Jones Industrial Average fell 28.34 points, or 0.10%, to 29,210.85.
    (Production: Kyoko Gasha)
  • Copyright Holder: REUTERS
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