Stocks, dollar turn negative after Fed minutes
By Herbert Lash
NEW YORK (Reuters) - U.S. stocks turned negative and the dollar slipped on Wednesday after minutes from the Federal Reserve showed planned changes in its bond investment policy, reversing a rally spurred by a strong jobs report earlier in the day.
Most Fed policy-makers think the central bank should take steps to begin trimming its $4.5 trillion balance sheet later this year as long as U.S. economic data holds up, minutes on Tuesday showed.
"A little bit of the optimism has ebbed out of the market," said Chris Zaccarelli, chief investment officer at Cornerstone Financial Partners in Huntersville, North Carolina.
Wall Street turned negative after the minutes from the Fed's policy-setting meeting of March 14-15.
An earlier stocks rally was driven by a report from payrolls processor ADP, which showed the most workers were added in March since December 2014, pointing to further tightening of the labor market.
"It may be a bit negative for equities and that's put in a bid for Treasuries," said Alex Manzara, vice president at R.J. O'Brien and Associates in Chicago.
The Dow Jones Industrial Average .DJI fell 41.02 points, or 0.2 percent, to 20,648.22, the S&P 500 .SPX lost 7.25 points, or 0.31 percent, to 2,352.91 and the Nasdaq Composite .IXIC dropped 34.13 points, or 0.58 percent, to 5,864.48.
MSCI's gauge of stocks across the globe .MIWD00000PUS shed 0.1 percent. Continued...