Stocks closed relatively flat on Wednesday after investors weighed the Federal Reserve's meetings from its January meeting with ongoing tensions between Russia and Ukraine. The S&P 500 Index closed slightly higher, while the Dow Jones Industrial Average and Nasdaq Composite slipped into negative flatlines.
Here's how the market settled on Wednesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Fed minutes show central bank is ready to raise rates, shrink balance sheet soon:
The Federal Reserve released its January policy-setting meeting minutes Wednesday afternoon, reaffirming that the central bank is prepared to move quickly to sheed the trillions of dollars in bonds on its balance sheet and raise interest rates to combat rising inflation.
"While participants agreed that details on the timing and pace of balance sheet runoff would be determined at upcoming meetings, participants generally noted that current economic and financial conditions would likely warrant a faster pace of balance sheet runoff than during the period of balance sheet reduction from 2017 to 2019," according to the minutes. "Participants observed that, in light of the current high level of he Federal Reserve's securities holdings, a significant reduction in the size of the balance sheet would likely be appropriate."
The minutes also reaffirmed that policymakers expect to raise the target range of benchmark interest rates in the near-term.
Homebuilder confidence falls for a second straight month:
Continuous supply chain issues appear to be weighing on homebuilder confidence this month as products are delayed throughout the industry.
Builder confidence in the single-family, newly built housing market fell by 1 point in February to 82, according to the National Association of Home Builders/Wells Fargo Housing Market Index report published Wednesday, marking the second straight month of declines. However, reading above the neutral level of 50 indicate expansion in a sector.
"Production disruptions are so severe that many builders are waiting months to receive cabinets, garage doors, countertops and appliances," said NAHB Chairman Jerry Konter in press statement. "These delivery delays are raising construction costs and pricing prospective buyers out of the market."
Retail sales rebound in January:
U.S. retail sales rose at a more-than-expected rate last month, recovering from December's decline, as spending across a broad range of sellers rebounded at the start of the year.
Total sales rose 3.8% in January month-over-month, according to the U.S. Commerce Department's latest report published Wednesday. Back in December, retail sales dropped by a downwardly revised print of 2.5%.
By category, non-store retailers (e-commerce) posted the largest month-over-month gain, jumping by 14.5%. Elsewhere, department store sales climbed 9.2%, furniture and home furnishing store sales were up 7.2%, and motor vehicle and parts dealer sales posted a 5.7% gain.
Here's how market benchmarks started trading soon after open:
S&P 500 Index: -0.45% or -20.04 points to 4,451.03
Dow Jones Industrial Average: -0.27% or -95.59 points to 34,893.25
Nasdaq Composite Index: -0.79% or -111.87 points to 14,026.83
