The S&P 500 fell for a third-straight day Tuesday as the Federal Reserve’s December meeting minutes showed Fed members were less optimistic about further rate cuts amid growing concerns about entrenched inflation.
At 4:00 p.m. ET (21:00 GMT), the S&P 500 and the Nasdaq 100 fell 0.1% and 0.2% respectively, while Dow Jones Industrial Average fell 0.2%, or 95 points.
Fed December minutes show growing divisions on next monetary policy step
The minutes of the Fed’s December meeting laid bare the divisions among Fed members on the whether to pause or cut rates further following the interest rate cut at the meeting.
While most participants believed that further cuts were needed should inflation continue to slow, some suggested that holding the line on further cuts for "for some time" amid concerns that progress on inflation had stalled.
In a sign that the Fed is leaning less dovish, several participants "pointed to the risk of higher inflation becoming entrenched," warning that further cuts could raise doubt about the central bank’s commitment toward lowering inflation toward its 2% target.
Intel rises despite tech stumble
Intel Corporation (NASDAQ:INTC) rose more than 1%, a day after Nvidia announced it had completed its purchase 214.7M new shares of Intel in a $5B deal.
Meta Platforms Inc (NASDAQ:META), meanwhile, deepened its push into AI, acquiring intelligent agent firm Manas.
The move higher in Meta and Intel came even as the broader tech market slipped modestly into the red.
Traders weigh seasonal optimism
Seasonal factors have also been in focus, with investors watching closely for a so-called Santa Claus rally, a period that typically spans the final days of December and the first sessions of January and has historically been associated with positive equity returns.
Optimism around this seasonal pattern had helped support stocks earlier this month, though recent declines have raised questions about whether the rally will fully materialize this year.
Despite the recent softness, U.S. equities remain on track to post solid gains for the year, underpinned by expectations of eventual monetary easing, resilient economic growth and strong corporate earnings.
source https://www.investing.com/news/stock-market-news/us-stock-futures-muted-after-wall-st-retreats-fed-minutes-on-tap-4424833
