Good afternoon. The market is awaiting $NVIDIA (NVDA.US)$ earnings after the close today, and the market overall closed in decline after the FOMC meeting minutes were some members dared to speak the words "raise rates."
As a general recap, the market was lower Wednesday after fresh all-time highs. Shortly after 3 PM EST, the $S&P 500 Index traded 0.27% lower. The $Dow Jones Industrial Average fell about 0.51%, and the $Nasdaq Composite Index fell 0.18%%.
Wednesday, the FOMC meeting minutes from the April 30 rates decision, many FOMC members commented on their uncertainty about when rates should come down. Several participants said they were willing to raise rates further.
The committee, during their April 30-May 1 meeting, found that uncertainty came from the possibility that "high interest rates may have smaller effects than in the past" and that "longer-run equilibrium interest rates may be higher than previously thought." Worse yet, some members feared U.S. economic potential output may be lower than previously estimated.
Participants said interest rates would stay put unless inflation numbers were clearly at 2%, or the labor market clearly weakens. Members said they would be willing to raise rates if "risks to inflation materialize in a way that such an action became appropriate."
This week, investors will also watch numerous Fed speeches. Federal Reserve Governor Christopher Waller said on Tuesday that if economic data continues to weaken over the next three to five months, the central bank might consider lowering interest rates by the end of 2024.
Last week, Wednesday's CPI numbers for April came in right at expectations. Prices advanced 3.4%, and core prices advanced 3.6% in April compared to a year ago, and 0.3% month over month.
The $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ was 4.87, and the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ 4.42.
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