S&P retracts from record high as Fed minutes highlight virus’ impact on economy

The S&P 500 retracted from record highs after tech stocks began to run into some resistance, and after the released U.S. Fed minutes revealed how several sectors of the economy still remained to be affected by the COVID-19 pandemic.

The S&P 500 held steady at 3,387, after it had hovered to an intraday high of 3,393.52. Meanwhile, the Nasdaq Composite fell by 0.21% while the Dow Jones Industrial Average inched up by 0.6% (16 points).

The Target Corporation and Lowe’s Companies Inc, whose benefitted from the sales boost during the height of the pandemic, saw their shares gaining 12% and 0.6% respectively with record-breaking second-quarter results.

In the Fed’s July meeting minutes, policymakers saw a recovery in consumer spending. However, they added that there was still ongoing uncertainty among businesses, which could potentially counter the rebound seen in the labor markets.

Still, policymakers pushed for the continuation of accommodative policy despite sluggish inflation rates.