Wall Street closed lower on Wednesday after the release of the Federal Reserve’s minutes and inflation data. The Dow ended its four-session winning streak, dropping 162.31 points or 0.46%, to close at 34,279.68.
According to CNBC, the Fed’s minutes showed that officials expect a banking crisis to cause a recession this year. Several officials considered a pause in March on rates, but eventually agreed to hike. Additionally, the minutes revealed concerns about banking stress and the potential for a recession.
The SPDR S&P 500 echoed the Fed’s view stating that tighter credit conditions are ahead, alongside a sustainable and sound US banking system. It was noted that further hikes in rates are appropriate in order to stabilize the economy.
Despite the negative close, there are still reasons for investors to remain optimistic. The Fed also confirmed that they will maintain their current stance in terms of purchases of fixed-rate bonds, which could continue to provide support for the stock market. Investors should remain vigilant, keeping an eye on the current market trends in order to make informed decisions with their investments.