Stocks fell on Wednesday as market players awaited the FOMC minutes. The Dow Jones Industrial Average fell 5 points. The S&P 500 slipped 0.1%, and the Nasdaq Composite slipped 0.2%.
The Fed is scheduled to release minutes from its July meeting at 2 a.m. later. The central bank has raised rates to the highest level in more than 22 years. Investors will also monitor economic data on housing, industrial production, and capacity utilization.
Meanwhile, the market is also paying attention to continued corporate results. Tax preparation company H&R Block and Mediterranean food chain Cava posted increases of 4.9% and 6.4%, respectively, based on stronger-than-expected quarterly reports. The target increased by more than 5%.
The moves followed a losing session on Wall Street, with all three major indexes ending more than 1% lower on Tuesday. Meanwhile, the S&P 500 ended the session below its 50-day moving average, which could be a signal of an upcoming decline.
Financial stocks including JPMorgan Chase, Wells Fargo, and Bank of America fell after Fitch warned it may be forced to downgrade the credit ratings of dozens of banks. This comes as the latest challenge to the sector, following Moody's decision last week to downgrade 10 banks while placing other institutions on the watch list.
In addition, economic news from China put pressure on investor sentiment. Retail sales and industrial production both grew less than economists expected, according to data released on Tuesday. The country's central bank also cut interest rates.
With more than half of August gone, all three major indexes are on course for a losing month. The Nasdaq Composite and S&P 500 are on course to finish lower by 5% and 3.3% respectively, while the Dow Jones is slated to decline by 1.7%.
