U.S. stocks erase earlier gains in the final hour of trade Wednesday after minutes show Fed expects 'mild recession' this year in the wake of banking stress

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U.S stock indexes turned lower in the final hour of trade Wednesday, reversing earlier gains after minutes from the Federal Reserve's March policy meeting...

U.S stock indexes turned lower in the final hour of trade Wednesday, reversing earlier gains after minutes from the Federal Reserve's March policy meeting showed policymakers projected the U.S. economy will fall into a"mild recession" later this year as banking stress continues to rattle financial markets. The Dow Jones Industrial Average DJIA, -0.11% shed 47 points, or 0.1%, to 33,633. The S&P 500 SPX, -0.34% lost 0.

4%, while the Nasdaq Composite COMP, -0.69% dropped 0.7%. Federal Reserve officials, meeting days after the collapse of Silicon Valley Bank, agreed that the stress in the banking sector would slow U.S. economic growth, but were uncertain about how much, according to minutes of the meeting released Wednesday. Investors also digested the latest consumer price index report which shows inflation remained stubbornly high in March, even as prices rose more slowly than expected.

 

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