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Fed policymakers divided in July over need for more rate hikes
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Target gains on quarterly profit beat
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Banks extend losses
(Updated at 4 pm ET/ 2000 GMT)
By Saeed Azhar and Noel Randewich
NEW YORK, Aug 16 (Reuters) - Wall Street ended lower on Wednesday after the Federal Reserve's minutes showed central bank officials were divided over the need for more interest rate hikes at their last meeting.
The minutes of the Fed's July meeting showed most policymakers continue to prioritize the battle against inflation, throwing in uncertainty for the markets over the outlook for rates.
"I agree with the governors that we're not convinced that inflation is totally in the rear view mirror," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
"I think the markets will be on pins and needles regarding what the Fed will do all through September and into October.”
According to preliminary data, the S&P 500 lost 33.62 points, or 0.76%, to end at 4,404.24 points, while the Nasdaq Composite lost 156.59 points, or 1.15%, to 13,474.45. The Dow Jones Industrial Average fell 179.86 points, or 0.51%, to 34,766.53.
Bank shares extended losses, with the S&P 500 bank index down and Bank of America leading losses among bigger banks.
Nvidia also reversed early gains to end lower after rising in the last two sessions, as two more brokerages raised their price targets on the stock ahead of the chip designer's quarterly results next week.
"Investors are starting to take a more sober look at the economic picture here," said Mike Reynolds, vice president of investment strategy at Glenmede.
Equities have suffered through a rough patch in August, with the S&P 500 languishing near one-month lows as data underscoring sticky inflation and a robust economy fans fears of interest rates staying elevated for longer.
While investors largely expect the Fed's monetary tightening to be nearing its end, worries linger the central bank could hold rates at the current level for longer.
Target shares gained after the big-box retailer's second-quarter profit beat estimates.
(Reporting by Saeed Azhar and Noel Randewich in New York, Amruta Khandekar and Shristi Achar A in Bengaluru; additional reporting by Lewis Krauskopf in New York Editing by Maju Samuel, Vinay Dwivedi and Deepa Babington)
