The S&P 500 was mostly flat in volatile trading Wednesday as investors surveyed the latest update from the Federal Reserve and the status of Russia’s military build-up near Ukraine.
The Dow Jones Industrial Average shed about 100 points, or 0.3%, after being down more than 300 points at its lows. The S&P 500 was near flat. The Nasdaq Composite eased 0.3%.
Major indexes cut their losses following the release of the minutes from the Federal Reserve’s January meeting.
Traders were perhaps a bit relieved the release did not indicate the Fed would move any faster than already expected in hiking interest rates.
“Marketwise it’s not the barn burner it could have been,” said Michael Schumacher, director rates at Wells Fargo. “I think this tells us very little about Fed policy.”
The minutes affirmed that the central bank is ready to raise interest rates and begin shrinking its balance sheet “soon.”
“Most participants noted that, if inflation does not move down as they expect, it would be appropriate for the Committee to remove policy accommodation at a faster pace than they currently anticipate,” the minutes said.
On the data front, retail sales surged 3.8% in January, the Census Bureau reported Wednesday. Economists expected the report to show sales rose 2.1% in January after a 1.9% decline in December.
ViacomCBS was the biggest loser in the S&P 500 on Wednesday, with shares falling more than 19% after the company said it is rebranding itself as Paramount Global to focus on streaming. The company also reported lower-than-expected quarterly earnings.
Facebook parent Meta Platforms shares fell more than 2% after the tech giant reportedly rolled out a new set of corporate values in its latest attempt to manage its demoralized employees.
Investors continued to monitor the latest developments regarding Russia-Ukraine conflict.
NATO officials on Wednesday accused Russia of amassing troops at the Ukrainian border. U.S. and Russian aircraft in the Mediterranean Sea flew close to each other over the weekend, The Wall Street Journal reported Wednesday.
Energy prices, which have been sensitive to the news, moved sharply higher Wednesday, with natural gas up more than 8% and oil prices climbing more than 1%.
The Cboe Volatility Index — known as Wall Street’s “fear gauge” — sat at around the 25 level.
“Geopolitical risk is something that’s very, very hard to trade and it’s something that we like to not overplay, so … you kind of have to wait out,” Delano Saporu, CEO of New Street Advisors Group, told CNBC’s “Squawk on the Street.”
President Joe Biden on Tuesday afternoon addressed the latest developments between Russia and Ukraine, reiterating that the U.S. will defend NATO territory.
“If Russia proceeds, we will rally the world,” Biden said, adding that Washington’s allies were ready to impose powerful sanctions that will “undermine Russia’s ability to compete economically and strategically.”
The comments came after the Russian government said earlier on Tuesday that some troops who had been on the Ukrainian border had returned to their bases.
This helped boost sentiment on Wall Street, with the major averages snapping a three-day losing streak Tuesday.
—CNBC’s Patti Domm contributed to this report.
