By Damian J. Troise and Alex Veiga

Stocks fell and bond yields rose on Wall Street Wednesday after details from last month’s Federal Reserve meeting showed the central bank intends to be aggressive in its efforts to fight inflation. Minutes from the meeting show that policymakers agreed to begin cutting the Fed’s stockpile of Treasurys and mortgage-backed securities by about $95 billion a month, starting in May. The S&P 500 fell 1%, the Dow Jones Industrial Average fell 0.4%. Technology companies had some of the biggest losses, pushing the Nasdaq down 2.2%. The yield on the 10-year Treasury rose to 2.61%.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Stocks fell and bond yields rose on Wall Street in afternoon trading Wednesday after details from last month's meeting of Federal Reserve policymakers showed the central bank intends to be aggressive in its efforts to fight inflation.

The minutes from the meeting three weeks ago reveal that Fed policymakers generally agreed to begin cutting the central bank's stockpile of Treasurys and mortgage-backed securities by about $95 billion a month, starting in May. That’s more than some investors expected and nearly double the pace the last time the Fed shrank its balance sheet.

At the meeting, the Fed raised its benchmark short-term rate by a quarter percentage point, the first increase in three years. The minutes showed many Fed officials wanted to hike rates by an even bigger margin last month, and they still saw “one or more” such supersized increases potentially coming at future meetings.

The S&P 500 was 0.5% lower as of 3 p.m. Eastern, down about half of what its decline was before the release of the Fed meeting minutes.

Technology companies had some of the biggest losses, which dragged the Nasdaq 1.4% lower and weighed heavily on the broader market. Higher interest rates tend to most hurt stocks that are seen as the priciest, which includes big technology companies. Apple fell 0.9% and Microsoft shed 2.7%.

The Dow Jones Industrial Average fell 36 points, or 0.1%, to 34,593.

Communications companies, retailers and others that rely on direct consumer spending also fell. Amazon fell 2.3% and Facebook parent Meta fell 2.6%.

The yield on the 10-year Treasury rose to 2.61% after the release of the minutes. It had been at 2.59% earlier in the day, up from 2.54% late Tuesday. The yield, which is used to set interest rates on mortgages and many other kinds of loans, is the highest it’s been in three years.

Investors are keenly focused on Fed policy as the central bank moves to reverse low interest rates and the extraordinary support it began providing for the economy two years ago when the pandemic knocked the economy into a recession.

The Fed's proposed timetable for allowing billions in bonds and mortgage-backed securities to roll off its balance sheet was hinted at on Tuesday in remarks by Fed Governor Lael Brainard, who said the process could start as soon as May and proceed at a rapid pace.

The rapid reduction in the Fed's balance sheet would help push up longer-term rates, but also contribute to higher borrowing costs for consumers and businesses.

Traders are now pricing in a nearly 77% probability the Fed will raise its key overnight rate by half a percentage point at its next meeting in May. That’s double the usual amount and something the Fed hasn’t done since 2000.

“Even though we’ve known about the coming rate hikes, it's been pretty difficult for long term equity managers across the board,” said William Huston, chief investment officer at Bay Street Capital Holdings.

Inflation is running at a four-decade high and threatens to crimp economic growth. Higher prices on everything from food to clothing have raised concerns that consumers will eventually pull back on spending. Russia's invasion of Ukraine has added to those worries, pushing energy and commodity prices, including wheat, even higher.

U.S. benchmark crude oil prices fell 5.6% Wednesday, but are more than 30% for the year. That has pushed gasoline prices higher, putting more stress on shipping costs, prices for goods and consumers' wallets.

Treasury Secretary Janet Yellen warned a House panel Wednesday that the conflict will have “enormous economic repercussions in Ukraine and beyond.”

The conflict in Ukraine continued prompting financial pressure against Russia. The White House said Western governments will ban new investmen t in Russia following evidence its soldiers deliberately killed civilians in Ukraine. The U.S. Treasury said President Vladimir Putin's government will be blocked from paying debts with dollars from American financial institutions, potentially increasing the risk of a default.

European governments have resisted appeals to boycott Russian gas, Putin's biggest export earner, due to the possible impact on their economies.

It’s been a mostly quiet day for corporate news, so far, ahead of the latest round of corporate earnings. JetBlue Airways fell 7.9% after offering to buy rival budget airline Spirit for $3.6 billion and break up a plan for Spirit to merge with Frontier Airlines. Spirit fell 2.5%.

Updated on April 6, 2022, at 4:13 p.m. ET.

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