Stock market today: Wall Street slips from all-time high as cuts to rates look further off
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Stocks slipped following the latest evidence that the economy remains strong, which could delay the cuts to interest rates that Wall Street wants. The S&P 500 fell 15.80 points, or 0.3%, to 4,942.81 from the all-time high set Friday. The Dow Jones Industrial Average dropped 274.30, or 0.7%, to 38,380.12, and the Nasdaq composite edged down by 31.28, or 0.2%, to 15,597.68. Earnings season is near its midpoint, and roughly half the companies in the S&P 500 have reported their latest results. Companies that have been missing analysts’ estimates for earnings this reporting season have been seeing their stocks get punished even more than usual. Stocks broadly felt pressure from another jump for yields in the bond market. The Fed has yanked the federal funds rate to its highest level since 2001 to bring down high inflation. Federal Reserve Chair Jerome Powell said again in an interview broadcast Sunday that the Fed may cut interest rates three times this year because inflation has been cooling. But he also said in the interview on “60 Minutes” that the Fed is unlikely to begin in March, as many traders had earlier hoped. The yield on the 10-year Treasury climbed to 4.16% from 4.09% late Friday and from less than 3.80% late last year. The jump accelerated after a report showed U.S. services industries are growing more strongly than economists expected. Such signals of a solid economy could give the Fed more reason to pause before cutting rates, because they could keep upward pressure on inflation. Caterpillar, which is seen as a bellwether of global economic strength, rose 2% after its profit for the latest quarter topped forecasts. Air Products and Chemicals slumped 15.6% after it reported profit and revenue that fell short of analysts’ expectations. Boeing fell 1.3% after the discovery of another problem in some of its 737 fuselages that may delay deliveries of about 50 aircraft. Chinese stocks have struggled on worries about a troubled real-estate industry and a disappointing overall economic recovery. Stocks also fell nearly 1% in South Korea, but index movements were more modest across the rest of Asia and Europe.

#StockMarket #InterestRates #WallStreet #Economy #FederalReserve #Inflation #EarningsSeason

https://apnews.com/article/stock-markets-rates-china-tech-7db8f895604df7a7a15de3edae66b8e9