US stocks lower in midday trade as global markets fall

New York (AP) — U.S. stocks followed markets in Europe and Asia lower Wednesday ahead of the release of the latest minutes from the Federal Reserve.

Keeping score: The Dow Jones industrial average fell 205 points, or 1.2 percent, to 17,305 as of 12:15 p.m. Eastern time. The Standard & Poor's 500 index lost 24 points, or 1.1 percent, to 2,073 and the Nasdaq composite fell 57 points, or 1.1 percent, to 5,002.

The sell-off was broad, with all 30 stocks of the Dow in the red and the 10 sectors of the S&P 500 index lower.

Fed watch: Investors are waiting for clues from the Fed on when the nation's central bank could begin to raise interest rates. The Fed will release minutes from its July meeting at 2 p.m. Eastern time. The Fed appears on track to raise interest rates later this year but has signaled a desire to see further economic gains and higher inflation.

China fear: Overseas, China's stock market was roiled by fears that the country's currency, the yuan, will continue to erode. Chinese stocks ended higher but only after a turbulent day that included sharp losses early on. The Shanghai Composite Index closed up 1.2 percent after plunging as much as 5 percent.

Analyst take: "The Chinese equity market may have ended on a positive note, but the erratic swings should be viewed with caution, and such a wide trading range tells us that China will not be stable for some time," said David Madden, market analyst at IG.

Bullseye: Target fell 34 cents to $79.96 even after the big box retailer lifted its profit forecast and reported better-than-expected second-quarter earnings.

Oil: Benchmark U.S. crude fell $1.50 to $41.63 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many U.S. refineries, fell $1.31 to $47.51 per barrel.

Oil's losses deepened after data from the U.S. government showed oil inventories rose much more than expected last week.

Bonds and currencies: The euro rose to $1.1065 while the dollar was down against the Japanese Yen at 124.08 yen. The yield on the 10-year U.S. Treasury note fell to 2.16 percent from 2.19 percent the day before.

By Ken Sweet, AP Business Writer. Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

The Gayly – August 19, 2015 @ 12:20pm.