Stocks end day ugly after Fed minutes show Taper talk is serious – .

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Stocks end day ugly after Fed minutes show Taper talk is serious – .



The shares sold on Wednesday after the report of the Federal Reserve’s July meeting was released.

the

Dow Jones Industrial Average

lost 383 points, or 1.1%, while the

S&P 500

fell 1.1%. the

Composite Nasdaq

decreased by 0.9%. All three finished near their lows of the day.

Fed governors have hinted in recent weeks that the start of the end of central bank bond purchases is near, and minutes have confirmed that the cut is within reach. “Most participants noted that it might be appropriate to start reducing the pace of asset purchases this year,” the minutes read.

The assessment comes as the economy has quickly recovered and reflects that the Fed is now focusing on when and how quickly to withdraw support from the economy.

The sale was large. About 83% of S&P 500 stocks fell that day, according to FactSet. This momentum often reflects concerns about the performance of the market without the Fed to back it up.

Now it’s just a matter of when the tapering will start. It will be “September or December,” said Dave Wagner, portfolio manager and analyst at Aptus Capital Advisors. “Everyone’s focusing on Jackson Hole in my opinion,” he continued, referring to the central bankers conclave taking place later this month in Jackson Hole, Wyo.

Oddly enough, the bond market didn’t react much, with the 10-year Treasury yield closing at 1.27%, where it hovered for most of the day. The 2-year yield, which often rises when market participants see the Fed hike short-term interest rates earlier, ended at 0.21%, lower than the 0.22% it hit in the morning .

“I don’t think we’ve learned anything new,” said Tom Graff, head of fixed income at Brown Advisory. Graff added that the consensus for a hike in short-term interest rates in 2022 or 2023 has not changed.

A weak market, however, was unable to keep some stocks down. For some, it was income.

Lowe’s

(ticker: LOW) the stock rose 9.6% after posting profit of $ 4.25 per share, beating estimates of $ 4.01 per share, on sales of $ 27.6 billion, above expectations of $ 26.9 billion. TJX (

TJX

) The stock rose 6% after reporting earnings of 64 cents per share, beating estimates of 59 cents per share, on sales of $ 12.1 billion, above expectations of $ 11 billion .

Others have been bolstered by analyst upgrades, with

ViacomCBS

(VIAC) increased 3.7% after being upgraded to Overweight Equal Weight at Wells Fargo, and

Ripe

The stock (BB) gained 4.2% after being upgraded to Hold from Sell at Canaccord Genuity.

Tilray
Share (TLRY) rose 1.5% after the company bought senior covered convertible bonds in a marijuana company

MedMen Entreprises.

Notes would convert to equity if cannabis were legalized in the United States

Write to Jacob Sonenshine at [email protected]

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