U.S. stock indexes reversed early losses Thursday as investors shrugged off the Federal Reserve’s minutes released the prior day which indicated the central bank could begin its taper later this year.
The Dow Jones Industrial Average slipped 14 points, or 0.04%, while the S&P 500 and the Nasdaq Composite advanced 0.33% and 0.5%, respectively. The Dow had lost as many as 270 points in the opening minutes of trading, extending the decline from the 382-point drop on Wednesday.
The Fed minutes released Wednesday showed several officials were in favor of scaling back asset purchases this year in order to be ready to raise interest rates if necessary. Others said the central bank could wait until next year as they wanted to see evidence of continued strength in the labor market.
Traders bought Treasurys as they rotated out of stocks, pushing the benchmark 10-year yield down three basis points to 1.23%.
In stocks, interest-rate sensitive companies, including JPMorgan Chase & Co., Bank of America Corp. and Visa Inc., underperformed the broader market.
Elsewhere, Robinhood Markets Inc. reported revenue soared 131% from a year ago but warned of a slowdown in retail trading. Revenue from crypto trading was $233 million, or 52% of all sales.
Ticker Security Last Change Change % HOOD ROBINHOOD MARKETS, INC. 45.61 -4.19 -8.41%
Macy’s Inc. beat on both the top and bottom lines and raised its annual profit and sales forecasts as shoppers flocked to its stores amid a reopening of the economy. The department store chain reinstated its dividend.
Tapestry Inc., owner of luxury brands, including Coach, Kate Spade and Stuart Weitzman, swung to a quarterly profit as digital sales spiked 35% year over year. The company reinstated its dividend.
Meanwhile, energy-related companies were in the crosshairs as West Texas Intermediate crude oil tumbled $2.04 to $63.42 a barrel amid concerns that a resurgence in global COVID-19 infections could slow the global economy.
Overseas markets were lower across the board.
In Europe, France’s CAC 40 paced the decline, falling 2.43%, while Britain’s FTSE 100 and Germany’s DAX 30 sank 1.54% and 1.25%, respectively.
In Asia, Hong Kong’s Hang Seng index tumbled 2.13%, Japan’s Nikkei 225 slid 1.1% and China’s Shanghai Composite slipped 0.57%.