CLOSING BELL: Early rally fades away on Wall Street

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Banks lead stocks lower late in trading, and minutes from the Fed’s latest meeting indicated it could start reducing its bond holdings.

The Associated Press

NEW YORK — Stocks gave up an early gain and ended lower on Wall Street after the Federal Reserve indicated it could start reducing its bond holdings.

 

Banks led the declines Wednesday. JPMorgan Chase lost 1.3 percent.

 

The market had been broadly higher most of the day but started to turn lower after minutes released from the Fed’s last policy meeting indicated the central bank might start trimming its balance sheet later in the year.

 

The Fed bought large amounts of bonds during the financial crisis to stimulate the economy.

 

The Standard & Poor’s 500 index lost 7 points, or 0.3 percent, to 2,352. It was up 18 points earlier.

 

The Dow Jones industrial average lost 41 points, or 0.2 percent, to 20,648. The Nasdaq fell 34 points, or 0.6 percent, to 5,864.

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