The major U.S. stock indexes slipped for a second day Wednesday as investors digested the latest Federal Reserve meeting minutes for insights into tapering plans.
The Dow Jones Industrial Average fell 382.59 points, or about 1.1%, to 34,960.69.
The Fed published its meeting minutes from its July gathering, revealing discussions about possibly dialing back its monthly bond-buying program this year.
The minutes noted the economy had reached its goal on inflation and was “close to being satisfied” with the progress of job growth.
To be sure, the minutes also reflected some division within the Fed with some members preferring to wait until early 2022 to start tapering bond purchases.
Since that July meeting, there’s been growing support within the central bank to announce tapering in September and begin it in October
Minutes from the Fed’s July meeting, which showed most policymakers back a wind-down in asset purchases before the end of 2021, prompted a selloff in US equities Wednesday.
In the monthly meeting, Fed officials wanted to emphasize that their decisions on tapering and hiking interest rates would be separate and not depend on the other course of action, Deutsche Bank strategists said.
Still, the Federal Open Market Committee members remained divided on the timing of when to end central bank support
“The Fed is scaling back because it is independent, and the motive for buying bonds was to supply needed liquidity,” Paul Donovan, chief economist at UBS Global Wealth Management said in a Thursday note. “That liquidity is less needed, so bond-buying is less needed.”
Investors will now watch for Fed Chair Jerome Powell’s speech at the Jackson Hole annual symposium next week for fresh clues to the central bank’s moves.
Dow Jones Short (Sell) Enter at: 34854.35 T.P_1: 34435.24 T.P_2: 33822.47 S.L: 35661.21
All information on this website is of a general nature. The information is not adapted to conditions that are specific to your person or entity. The information provided can not be considered as personal, professional or legal advice or investment advice to the user.
This website and all information is intended for educational purposes only and does not give financial advice. Signal Factory is not a service to provide legal and financial advice; any information provided here is only the personal opinion of the author (not advice or financial advice in any sense, and in the sense of any act, ordinance or law of any country) and must not be used for financial activities. Signal Factory does not offer, operate or provide financial, brokerage, commercial or investment services and is not a financial advisor. Rather, Signal Factory is an educational site and a platform for exchanging Forex information. Whenever information is disclosed, whether express or implied, about profit or revenue, it is not a guarantee. No method or trading system ensures that it will generate a profit, so always remember that trade can lead to a loss. Trading responsibility, whether resulting in profits or losses, is yours and you must agree not to hold Signal Factory or other information providers that are responsible in any way whatsoever. The use of the system means that the user accepts Disclaimer and Terms of Use.
Signal Factory is not represented as a registered investment consultant or brokerage dealer nor offers to buy or sell any of the financial instruments mentioned in the service offered.
While Signal Factory believes that the content provided is accurate, there are no explicit or implied warranties of accuracy. The information provided is believed to be reliable; Signal Factory does not guarantee the accuracy or completeness of the information provided. Third parties refer to Signal Factory to provide technology and information if a third party fails, and then there is a risk that the information may be delayed or not delivered at all.
All information and comments contained on this website, including but not limited to, opinions, analyzes, news, prices, research, and general, do not constitute investment advice or an invitation to buy or sell any type of instrument. Signal Factory assumes no responsibility for any loss or damage that may result, directly or indirectly, from the use or dependence on such information.
All information contained on this web site is a personal opinion or belief of the author. None of these data is a recommendation or financial advice in any sense, also within the meaning of any commercial act or law. Writers, publishers and affiliates of Signal Factory are not responsible for your trading in any way.
The information and opinions contained in the site are provided for information only and for educational reasons, should never be considered as direct or indirect advice to open a trading account and / or invest money in Forex trading with any Forex company . Signal Factory assumes no responsibility for any decisions taken by the user to create a merchant account with any of the brokers listed on this website. Anyone who decides to set up a merchant account or use the services, free of charge or paid, to any of the Forex companies mentioned on this website, bears full responsibility for their actions.
Any institution that offers a service and is listed on this website, including forex brokers, financial companies and other institutions, is present only for informational purposes. All ratings, ratings, banners, reviews, or other information found for any of the above-mentioned institutions are provided in a strictly objective manner and according to the best possible reflection of the materials on the official website of the company.
Forex trading is potentially high risk and may not be suitable for all investors. The high level of leverage can work both for and against merchants. Before each Forex investment, you should carefully consider your goals, past experience and risk level. The opinions and data contained on this site should not be considered as suggestions or advice for the sale or purchase of currency or other instruments. Past results do not show or guarantee future results.
Neither Signal Factory nor its affiliates ensure the accuracy of the content provided on this Site. You explicitly agree that viewing, visiting or using this website is at your own risk.
