U.S. Stocks, Dollar Fall as Minutes Spark Caution: Markets Wrap
- Rise in oil inventories sends U.S. crude below $51 a barrel
- Investors await Trump-Xi meeting, U.S. jobs, Fed minutes
Fed Favors Plan to Shrink Balance Sheet Later in 2017
U.S. stocks fell with the dollar, while Treasuries rose as Federal Reserve meeting minutes sparked a note of caution on financial markets as investors assess the timing for future rate increases and changes to tax and spending policies.
The S&P 500 Index erased gains as the minutes indicated some officials saw equity prices as “quite high,” while Reuters reported House Speaker Paul Ryan said that tax reform could take longer than health overhaul. Treasury yields and the dollar fell as the Fed saw muted risks that inflation will accelerate past projections and officials thought it appropriate to shrink the balance sheet this year. Crude slipped below $51 a barrel after data showed an increase in U.S. inventories.