List of U.S. stock market indices are down sharply in trading Thursday as investors assess the December Federal Reserve (Fed) meeting minutes and a fresh batch of statistics.

U.S. stock index prices – what affects the stock market?

Minutes from the Federal Reserve’s December meeting showed that none of the Fed’s leaders believe that cutting the benchmark interest rate in the early part of the year, as the financial markets expect, is prudent. Meeting participants generally believed that “maintaining restrictive monetary policy for an extended period until inflation clearly moves toward 2% would be justified,” the minutes said.

At that, the American Central Bank confirmed its desire to achieve a slowdown of inflation without excessive weakening of economic activity. This affects the current quotations for the US 100 Index.

In December the Fed raised the rate by 50 basis points (bps) – to 4.25-4.5% per annum, while at the previous four meetings the rate was raised by 75 bps. At the same time, Fed Chairman Jerome Powell said the U.S. central bank will raise the rate until it meets its inflation targets.

The number of Americans filing for unemployment benefits for the first time last week fell by 19,000 to 204,000, according to a report from the U.S. Labor Department. This is the lowest figure since late September. A week earlier, the figure was 223,000, not 225,000 as originally reported. Analysts had forecast an average of 225,000, according to Trading Economics.

The U.S. foreign trade deficit narrowed 21% to $61.5 billion in November, the country’s Commerce Department said. This is the lowest figure since September 2020. According to revised data, in October, the negative trade balance was $77.8 billion, and not $78.2 billion, as previously reported. Experts on average had expected a decline to $73 billion from the previously announced October level, according to Trading Economics.

A report from industry body ADP on Thursday showed an acceleration in the pace of U.S. private-sector job growth. They increased by 235,000 in December, the ADP said. Analysts on average had forecast an increase of 150,000 jobs, according to Trading Economics. The figure rose to 127,000 in November.

• The Dow Jones Industrial Average index declined 380.47 points (1.14%) to 32889.30 points.

• Standard & Poor’s 500 index declined 43.67 points (1.13%) to 3,809.30 points.

• The Nasdaq Composite was down 145.18 points (1.39%) at 10313.59.

Earlier, we reported that the US stock indices were rising before the publication of the minutes of the Fed meeting.