FX.co ★ Wall Street Slips on Hawkish Fed Signals

The S&P 500 slipped 0.3%, the Nasdaq declined 0.4%, and the Dow fell 0.6% as investors trimmed risk after FOMC minutes suggested disinflation may be slower than anticipated and that higher rates could be required. Longer-dated Treasury yields rebounded, while crude prices advanced amid escalating tensions with Iran and President Trump’s comments on potential strikes—moves that buoyed energy stocks but weighed on banks. Asset managers came under pressure after Blue Owl (-5.9%) tightened investor liquidity and sold $1.4 billion in loan assets, dragging Blackstone and Apollo down 5.4% and 5.2%, respectively. Software names, including Salesforce, Intuit, and Cadence, lost between 1.3% and 2.8% on renewed concerns over AI-driven disruption. Bank of America and Wells Fargo each declined 1.1%. Elsewhere, Walmart fell 1.4% despite topping fourth-quarter revenue estimates and raising its dividend, while Deere jumped 11.6% following its earnings release.