The US markets closed choppy session mostly lower on Wednesday, as modest post-Fed-minutes gains evaporated by the close of the trading day. Widely anticipated minutes from the Federal Reserve’s most recent meeting revealed a rate hike in June is ‘unlikely’ as officials were concerned about weaker economic growth during the first quarter. According to the summary of the discussions on April 29-30, only a few Fed officials thought that the economy would show enough strength to justify a move in six weeks. They had no good reason to explain why consumer spending was so weak. Fed officials have stated that they would hike rates if the labor market continued to improve and they had reasonable confidence that inflation was moving back towards to 2% annual rate target. Minutes showed that most Fed officials think the dramatic slowdown in growth in the first quarter was transitory and that a moderate rebound would resume in the second quarter. Inflation was also expected to move higher. This suggests that they see a rate hike coming sometime later this year. Fed officials will meet again on June 16-17. It will be the first live meeting since the Great Recession where a rate hike could occur. Over the past six years, the Fed has guided the market not to expect a rate hike at any upcoming meeting.
The Dow Jones Industrial Average lost 26.99 points or 0.15 percent to 18,285.40, S&P 500 was lower by 1.98 points or 0.09 percent to 2,125.85 while, the Nasdaq was up by 1.71 points or 0.03 percent to 5,071.74.
The Indian ADRs closed mostly in green on Wednesday; HDFC Bank was up 0.37%, Infosys was up 0.32% and Wipro was up by 0.17%. On the other hand, Tata Motors was down by 0.11% and Dr. Reddy’s Lab was down 0.09%.
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