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Stocks - S&P Ends off Lows as Dovish Fed Minutes Ease U.S.-China Trade Jitters

Published 22/05/2019, 20:22
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Investing.com - U.S. stocks closed down but finished off their lows Wednesday as renewed trade jitters were offset by dovish minutes from the Federal Reserve.

The S&P 500 lost 0.28%, the Dow Jones Industrial Average fell 0.39%, while the Nasdaq Composite slid 0.45%.

Federal Reserve policymakers said their patient approach to monetary policy action could continue for "some time," even if the global economy improves, according to minutes of the Fed’s last meeting released today. That helped offset renewed trade jitters amid reports that Washington is set to impose restrictions on other major Chinese tech companies.

Chip stocks led the declines in the broader tech sector on reports the White House is considering banning as many as five Chinese companies, including video surveillance equipment Hikvision, as part of a move to curb Beijing's access to U.S. intellectual property, Bloomberg reported, citing people familiar with the matter.

Qualcomm (NASDAQ:QCOM) fell 10.9%, as it was also hit with an adverse antitrust ruling. Intel (NASDAQ:INTC), Nvidia (NASDAQ:NVDA) and Micron (NASDAQ:MU) also closed in the red as the Philadelphia Semiconductor Index fell 2.1%.

The White House move comes a day after the U.S. Commerce Department granted a 90-day license for U.S. mobile phone companies and internet broadband providers to work with Huawei to keep existing networks online and protect users from security risks.

U.S. Treasury Secretary Steven Mnuchin underscored the fraught U.S.-China relations, confirming in a CNBC interview that the U.S. has no plans to go to Beijing to resume trade negotiations.

China had invited the U.S. trade team to Beijing in a bid to iron out trade differences after the nations had failed to reach a consensus in talks in Washington earlier this month.

On the earnings front, Lowe’s Companies (NYSE:LOW) slumped more than 13% after reporting mixed first-quarter earnings as it missed expectations from Investing.com on the bottom line. Shares of Nordstrom (NYSE:JWN) also suffered a 9.25% drubbing after it missed first-quarter earnings estimates and cut its guidance for the year. But Target (NYSE:TGT) ended 7.8% higher as the retailer delivered a beat on the top and bottom lines.

Falling energy stocks also slumped, dragging the broader market lower, on the back of a slump in oil prices following an unexpected build in weekly U.S. crude supplies.

Top S&P 500 Gainers and Losers Today:

Target (NYSE:TGT), Regeneron Pharmaceuticals (NASDAQ:REGN) and Advance Auto Parts Inc (NYSE:AAP) were among the top S&P 500 gainers for the session.

Lowe’s (NYSE:LOW), Qualcomm (NASDAQ:QCOM) and Nordstrom (NYSE:JWN) were among the worst S&P 500 performers of the session.

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