Indexes opened cautiously green but fell after treasury yield pullbacks were insufficient to keep stocks afloat. ASML, a maker of factory tools that make semiconductor chips, fell dramatically after earnings and spelled a warning for the semiconductor industry.
Just past 4 PM EST, the preliminary closing figures showed the $S&P 500 Index traded -0.58%, the $Dow Jones Industrial Average fell 0.12%, and the $Nasdaq Composite Index fell 1.15%.
MACRO
Beige Book as Boring as Ever
The Fed released the Beige Book economic summary on Wednesday. Industry contacts from across the country predicted that inflation would hold steady at a slow pace soon.
Of the twelve districts reporting, most found a slightly expanding economy with evidence of increased consumer spending. In the labor market, nine of twelve districts reported slow, modest increases in employment. Fed contacts reported that wages grew slower, returning to historical averages.
Manufacturers and companies across the company said it was more difficult to pass price increases along to consumers. The Fifth District of Richmond mentioned the collapse of the Francis Scott Key Bridge as worrying, but it has not yet been directly linked to the economic slowdown.
Tuesday, Federal Reserve Chair Jerome Powell said recent macroeconomic data showed, "a lack of further progress on inflation this year," at a Canadian macroeconomic speaking event in Washington D.C.
The $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ fell past 5% toward 4.93%, while the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ fell to 4.58%.
"A year from now, we'll have more answers," Powell said.
Mooers, what are you watching today?
Source: Bloomberg, Dow Jones, CNBC, Reuters
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