FX.co ★ US Stocks Pull Back on Thursday

US equity indices closed sharply lower on Thursday, paring the prior day’s gains amid signs that the Federal Reserve may keep interest rates elevated for longer. The three major averages fell as much as 0.5%. Yields at the longer end of the curve rebounded as hawkish signals from the FOMC minutes coincided with a sharp rise in crude oil prices and softer initial jobless claims data for mid-February. The minutes showed that a majority of policymakers were worried that disinflation could take longer than usual, and a few indicated that rates might need to move higher if inflation stabilizes above the Fed’s target. Bank and lender stocks declined alongside the jump in yields, while major tech names edged lower on concerns about the sustainability of elevated capital expenditure commitments for data centers. Nvidia and Meta both slipped 0.5%, while JPMorgan and Bank of America dropped more than 1%. In contrast, Walmart gained 2% after beating Q4 revenue estimates and raising its dividend, and Deere advanced 7% following its earnings release.