Dow slides 200 points as Fed meeting minutes show inflation worries: Live updates

U.S. stocks traded lower Wednesday as the minutes from the Federal Reserve’s May meeting raised concerns of persistent inflation, indicating the central bank may not cut interest rates soon.

The Dow Jones Industrial Average declined 158 points, or 0.4%. The S&P 500 and Nasdaq Composite fell 0.3% and 0.4%, respectively.

Minutes from the April 30-May 1 policy meeting of the Federal Open Market Committee released Wednesday stated a lack of progress in recent months toward lower inflation. The minutes also showed “various participants” discussed a willingness to hike rates if inflation didn’t keep moving lower toward its 2% goal.

Investors also looked ahead to the widely anticipated release of Nvidia’s latest earnings report. The chipmaker dropped more than 1% Wednesday ahead of its quarterly earnings results after the bell. Analysts are expecting another strong quarter from the chipmaker. LSEG data shows consensus estimates call for earnings per share and revenue to have risen 400% and 240% year on year, respectively.

The chipmaker’s earnings announcement “has become one of the most important events on the macro calendar,” according to Deutsche Bank strategist Henry Allen.

Allen noted that the day after Nvidia’s last earnings report in February, the S&P 500 jumped more than 2% the following day, notching its best daily results in more than a year.

Investors will closely watch the report for clues on whether this year’s tech rally can continue. The tech-heavy Nasdaq Composite has jumped 12% to record highs year to date.

Target shares fell more than 7% on weaker-than-expected earnings, with management citing weaker spending trends in discretionary categories. The retailer’s troubles raised broader concerns about consumer spending.

Existing home sales unexpectedly fell in April, indicating a potential cooldown in the housing market. Economists polled by Dow Jones had expected home sales to rise during the month.

Mortgage applications to buy new homes dropped for the fourth week in five, the Mortgage Bankers Association said.

Traders will also watch out for minutes from the latest Federal Open Market Committee meeting.

The S&P 500 and Nasdaq are coming off record setting sessions, while the Dow rose slightly.