Stock market today: Wall Street’s momentum cools after its latest record-setting week | New Orleans CityBusiness

Stock market today: Wall Street’s momentum cools after its latest record-setting week | New Orleans CityBusiness

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U.S. stocks are drifting Monday at the start of what will be a shortened trading week.

The S&P 500 was down 0.1% in afternoon trading. The Dow Jones Industrial Average was down 120 points, or 0.3%, as of 2:40 p.m. ET, and the Nasdaq composite was virtually unchanged.

The market is recovering from last week's big run, which was the best of the year and sent all three indexes to record highs on Thursday. Stocks rose as the Federal Reserve indicated it is still likely to make several interest rate cuts this year as long as inflation continues to cool.

This puts the S&P 500 on track for another winning month in what has been a nearly unstoppable streak since late October. The strength has been long-lasting, “but the longer the market goes up without a notable pullback, the closer we will be to that move happening,” according to Chris Larkin, managing director of E-Trade trading and investments at Morgan Stanley.

For the market to continue rising, more companies will need to generate strong earnings growth to justify high prices, Morgan Stanley strategists say.

United Airlines weighed on the market and lost 4.1%. Federal regulators are increasing their oversight of the company after several recent problems, including a piece of the outer fuselage that fell off a plane and a plane that lost a tire during takeoff.

Boeing was paring some of its heavy losses for the year and rose 1.5%. Beset by concerns about its safety and manufacturing quality, the planemaker announced a management shakeup. Among the measures is the departure of its general director, scheduled for the end of the year.

Wall Street is also preparing for the return of a stock that trades under the symbol “DJT,” the initials of former President Donald Trump. The company behind its Truth Social platform completed its merger with Digital World Acquisition Corp. after Digital World shareholders approved the deal on Friday.

The company's shares rose 34.3% on what is expected to be its final day of trading under its symbol “DWAC.” On Tuesday it will begin trading under the name “DJT,” which was used by Trump Hotels & Casino Resorts before it filed for Chapter 11 bankruptcy protection in 2004.

The highlight of this week for financial markets may be Friday's report on US consumer spending. It will also include the latest update on the inflation measure the Federal Reserve prefers to use. But U.S. stock and bond markets will be closed that day in observance of Good Friday. The US bond market will also close early on Thursday, which could build up trading in anticipation of the report.

Despite a series of recent reports that showed inflation remains higher than expected, the Federal Reserve appears to expect inflation to continue its long-term cooling trend.

Traders largely expect the Federal Reserve to begin cutting rates in June. That would offer relief to the economy because the Federal Reserve's main rate has been at its highest level since 2001 for nearly eight months. High rates act to reduce inflation by slowing the entire economy and hurting investment prices.

In the bond market, Treasury yields were rising. The 10-year yield rose to 4.25% from 4.20% on Friday.

In foreign stock markets, indices mostly moved modestly in mixed trades in Europe and Asia.

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AP Business writers Yuri Kageyama and Matt Ott contributed.

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