US markets close lower; investors wary ahead of data
US stock markets posted modest declines on Wednesday as investors digested minutes from the US Federal Reserve's latest meeting and braced for significant economic data in the days to come. Minutes showed a united Fed agreed to hold interest rates steady at the June meeting as a way to buy time and assess whether further rate hikes would be needed. Following the release of the anticipated minutes, investors still largely expected the central bank to raise rates at its next meeting later this month. Key economic data is due before the meeting, including the monthly US jobs report on Friday. “The markets are in a wait-and-see for the economic data,” said Paul Nolte, senior wealth advisor and market strategist at Murphy & Sylvest Wealth Management. “Since the Fed is data dependent, so is the market.” The Dow Jones Industrial Average fell 0.4 percent to 34,288, the S&P 500 lost 0.2 percent to 4,446 and the Nasdaq Composite dropped 0.2 percent  to 13,791. In data out on Wednesday, new orders for US-made goods increased less than expected in May, fanning fears of an economic slowdown. Meanwhile, China's services activity expanded at the slowest pace in five months in June, according to a private-sector survey. Shares of Meta Platforms rose 2.9 percent ahead of the expected release of the company's Twitter-rival app, Threads, on Thursday. Megacap stocks such as Meta have led the gains so far this year for major equity indexes, including the biggest first-half increase for the Nasdaq Composite in 40 years. “We could see the largest stocks pull back, but the average stock catch up,” said Jack Ablin, chief investment officer at Cresset Capital. “We are looking for somewhat of a convergence.” Shares of United Parcel Service fell 2.1 percent after the Teamsters Union said UPS "walked away" from negotiations over a new contract, a claim the shipping giant denied. (Reuters)