On Wednesday, the Dow Jones Industrial Average dropped nearly 300 points, making a loss for the second day in a row, while the S&P 500 also lost ground. In the last hour of trading, both leading indices extended losses and finished near intraday lows. Similarly, the Nasdaq also reverted downward and lost almost 100 points.
The Federal Reserve has released the minutes of its July meeting, which indicate conversations about possibly reducing its monthly bond-buying program this year.
“Looking ahead, most participants noted that, provided that the economy were to evolve broadly as they anticipated, they judged that it could be appropriate to start reducing the pace of asset purchases this year,” the minutes said.
Target Corp. reported earnings and revenue that beat Wall Street estimates, thanks to a boost from back-to-school shopping. Despite a sharp slowdown in digital sales growth, the big-box retailer raised its comparable sales forecast for the second half of the year and announced a new $15 billion share repurchase program.
Quick market analysis
The Nasdaq fell 0.9% at the closing. The S&P 500 index sank by 1.1 %, and the Dow Jones industrials followed suit and dropped by a similar percentage. The Russell 2000 index decreased by 0.8%. According to early statistics, volume on the Nasdaq and the NYSE was lower than at the closing on Tuesday.
Stocks were also driven down by weak economic news. Housing stats fell more than expected in a month, posting their most significant monthly drop since April.
Meanwhile, following a massive sell-off on Tuesday, reopening stocks and cyclical sectors like cruise lines and airlines have stabilized. After dropping seven basis points on Friday and four basis points on Monday, the 10-year Treasury yield was about 1.27%.
Krispy Kreme Inc. exceeded expectations on both the top and bottom lines, claiming that its drive-thru operation and new menu items will help to mitigate the impact of the delta variation. Salesforce.com (CRM), a Dow component, has broken out above its previous high of 253.50. Shares finished slightly below the peak after gaining 1.7%. Following a significant sell-off on Tuesday, Home Depot (HD) recovered on Wednesday.