US stocks have finished lower after minutes from the latest US Federal Reserve meeting showed some policymakers sought an early hike in the Fed’s benchmark interest rate.
The Dow Jones Industrial Average fell 89.84 (0.56 per cent) to 16,040.56.
The broad-based S&P 500 slumped 12.01 (0.65 per cent) to 1,828.75, while the tech-rich Nasdaq Composite Index lost 34.83 (0.82 per cent) at 4,237.95.
The bulk of the losses came after the minutes from the central bank’s end-January policy meeting were released at 1400 GMT.
“Two pm was when this downward movement began,” said Dan Greenhaus, chief global strategist at BTIG.
The minutes revealed the policy makers were increasingly upbeat, and that even though the majority still saw their benchmark short-term rate staying at the ultra-low level of 0-0.25 per cent until 2015, “a few” favoured higher raising the rate “relatively soon,” some even pointing to mid-2014.
Large banks retreated, including Dow component JPMorgan Chase (-2.1 per cent), Citigroup (-2.4 per cent) and Bank of America (-1.6 per cent).
Some leading technology companies also had a bad day, including Twitter (-4.6 per cent), Apple (-1.6 per cent) and (-1.8 per cent). But Facebook advanced 1.1 per cent.
Pharmaceutical company Eli Lilly and Company announced that a trial of its ramucirumab treatment for lung cancer boosted survival rates, propelling the stock 5.1 per cent higher.
Signet Jewelers unveiled a $US1.4 billion offer to acquire rival Zale. Zale shot up 40.3 per cent to $US20.92, just under the $US21 per-share offer. Signet jumped 18.1 per cent.
US Steel plummeted 7.0 per cent on news that the Commerce Department determined that South Korean steel makers had not engaged in dumping of steel pipes used by oil drillers.
Earnings of $US5.71 per share from fertiliser maker CF Industries easily beat expectations of $US4.49 per share. Shares jumped 5.1 per cent.
Bond prices fell. The yield on the 10-year US Treasury rose to 2.73 per cent from 2.68 per cent Tuesday, while the 30-year jumped to 3.71 per cent from 3.67 per cent. Bond prices and yields move inversely.
