© Reuters. S&P 500 closes lower on Wednesday.
Investing.com – The S&P 500 closed flat on Wednesday as the Federal Reserve’s minutes pointed to further monetary tightening, while a slump in oil prices pressured energy stocks.
The fell about 0.36%. The fell 0.03%, while the fell 0.04%.
Wall Street’s attempt to extend its rally following its biggest one-day gain since March on Tuesday was undone by concerns that further Fed rate hikes could fuel a rally in U.S. government bond yields, denting investor appetite for risker assets like stocks.
The Federal Reserve’s minutes showed that members remained committed to gradually raising interest rates as the economy was on pace to churn out „strong“ growth in the third quarter of the year.
U.S. government bond yields surged following the release of the Fed’s minutes as the hit session highs.
Mostly upbeat corporate earnings, which have helped shift investor focus away from rising bond yields to corporate fundamentals, helped offset losses somewhat in the broader averages.
Netflix (NASDAQ:) posted third-quarter earnings postmarket Tuesday that handily beat expectations, as subscriber numbers came in well above analysts‘ estimates amid strong growth in both U.S. and overseas markets. Its stock closed 5.3% higher.
M&T Bank (NYSE:) and US Bancorp (NYSE:) results also topped estimates, adding to a recent wave of bullish earnings from banks, triggering broad-based gains across financials.
Goldman Sachs (NYSE:) and Morgan Stanley (NYSE:), both of which reported above-forecast earnings and revenue on Tuesday, rose nearly 3%.
But a weaker-than-expected report from IBM (NYSE:) saw its stock spiral 7.6% lower as the company struggled to maintain revenue growth, though its earnings came in above Wall Street’s estimates.
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