Wall Street Slumps on Hawkish FOMC Minutes

Wall Street stocks tumbled on Wednesday after the Federal Open Market Committee (FOMC) released minutes from its latest meeting, suggesting a possible early rate hike. The Dow Jones Industrial Average dropped 392.54 points to 36,407.11 while the S&P 500 fell 92.96 points to 4,700.58 and the Nasdaq Composite lost 522.55 points to 15,100.17 at close of trading. The yield on 10-year U.S Treasuries rose 0.053 basis points to 1.704 percent as investors reacted to the FOMC’s hawkish stance by selling off equities and buying bonds in anticipation of higher borrowing costs in the future due to an earlier than expected rate hike by the Fed Reserve Board of Governors (FRB). The price of West Texas Intermediate crude oil rose 0.86 percent to $77.85 per barrel while gold gained 10.5 dollars an ounce to settle at $1,825 per ounce as traders sought out safe haven assets in response to rising interest rates and stock market volatility caused by the FOMC’s statement that it was “prepared for any action that may be appropriate” when it comes to raising rates sooner rather than later this year or next year if economic conditions warrant such a move . Analysts are warning investors that higher interest rates could dampen consumer spending and slow down economic growth which could further drag down stock prices in coming weeks and months ahead as traders adjust their portfolios accordingly in light of these developments .