U.S. stocks sank Wednesday, reversing gains from earlier in the session, after inflation data showed that consumer price gains cooled in March and Fed minutes revealed that further rate increases haven’t been ruled out.
The S&P 500 (^GSPC) slid by 0.41%, while the Dow Jones Industrial Average (^DJI) fell by 0.11%. The technology-heavy Nasdaq Composite (^IXIC) dipped by 0.85%.
Bonds yields tipped lower after the release of Fed minutes from the last policy meeting in March. The yield on the 10-year note ticked down to 3.40%, while rate-sensitive two-year note yields slipped to 3.97% Wednesday.
Some of the key takeaways from the minutes of the Federal Reserve’s March meeting — when the central bank raised rates by 0.25% — showed that staff forecast the economy would likely slide into recession later this year. Officials expressed concern about the banking sector problems and scaled back their expectations for rate hikes, while some even considered pausing the rate hikes.
