NASDAQ-Adv: 0.928 Dec: 3.318 NYSE-Adv: 0.598 Dec: 3.546
(Source: Nasdaq)
The benchmark S&P 500 and Dow weakened midday Thursday after long-term Treasury yields remained elevated following the latest economic data as well as comments from U.S. policymakers. the Federal Reserve.
New York Federal Reserve President John Williams said that while the US central bank had made considerable progress in reducing inflation, it did not yet need to adopt looser monetary policy, given recent uneven movements in pressure on prices.
Richmond Fed President Thomas Barkin said the latest inflation data showed the U.S. Federal Reserve โis not yet where we want to beโ and that he was not sure inflation would continue to decline.
Wall Street suffered heavy selling last session after data showed U.S. consumer prices rose more than expected in March, leading financial markets to assume the central bank could delay cutting interest rates. until September of this year.
โWhen you have had a drop like the one we had yesterday, then the debate is no longer about when a rate cut is possible, but perhaps a rate increase (instead), that is integrated into the market perception and therefore "The market will recover quickly," said Peter Cardillo, chief market economist at Spartan Capital Securities.
Long-term government bond yields rose back to elevated levels after declining earlier in the day, with the 10-year bond last at 4.562%, near its highest level since November.
Traders now see a more than 40% chance that the Federal Reserve will deliver the first rate cut in July, according to the CME FedWatch tool.
Meanwhile, a Labor Department report showed that U.S. producer prices rose moderately in March, as the rise in the cost of services was mitigated by a drop in goods prices, which could help calm fears that inflation was accelerating again.
Gains among chipmakers and mega-cap growth stocks such as Nvidia (NVDA.O) - Opens a new tab and Alphabet (GOOGL.O) - Opens a new tab helped the Nasdaq rise 0.5%.
Of the S&P 500's 11 sectors, nine fell, with energy (.SPNY) Opens a new tab leading the losses with a 1.4% drop.
The S&P 500 financial index (.SPSY), opens a new tab fell 0.6% a day before the trio of big banks: JPMorgan Chase & Co (JPM.N), opens a new tab, Citigroup (CN), open a new tab and Wells Fargo. (WFC.N), opens in new tab โ is scheduled to release quarterly results.
At 11:48 a.m. ET, the Dow Jones Industrial Average (.DJI), opens a new tab fell 136.67 points, or 0.36%, to 38,324.84, the S&P 500 (.SPX), opens a new tab rose 0.66 points, or 0.01%, to 5,161.30, and the Nasdaq Composite (.IXIC), opens in new tab, rose 75.31 points, or 0.47%, to 16,245, 67.
CarMax(KMX.N), opens a new tab fell 13.2% after the used vehicle retailer missed analyst estimates for fourth-quarter results and said it may miss its target of long-term vehicle sales.
Globe Life (GL.N), opens a new tab fell 19.5% after Fuzzy Panda Research revealed a short position in the company, alleging multiple cases of insurance fraud.
Declining issues outnumbered advancing ones by a ratio of 2.01 to 1 on the New York Stock Exchange and 1.31 to 1 on the Nasdaq.
The S&P index recorded two new 52-week highs and six new lows, while the Nasdaq recorded 29 new highs and 89 new lows.
Source: Reuters (Reporting by Shashwat Chauhan and Shristi Achar A in Bengaluru; Editing by Pooja Desai)
