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NEW YORK (AP) — Wall Street’s recent triumphant month is coming to a quiet end as U.S. stocks hover near record highs.
The S&P 500 rose 0.2% in morning trading and has continued to move modestly since its close. Last week’s all-time high. As of 10:45 a.m. ET, the Dow Jones Industrial Average was down 40 points, or 0.1%. The Nasdaq Composite rose 0.5%, again breaking the record set in 2021.
The bond market was also calm after a close run, with yields falling. inflation report Last month showed that prices across the country rose almost as expected. Wall Street’s concern was that inflation data would signal an unpleasant reacceleration. Previous reports indicated that prices rose more than expected in January. consumer and wholesale level.
“Inflation is the hottest it’s been in a while, but this may be a blip rather than the start of something worse,” said Brian Jacobsen, chief economist at Annex Wealth Management.
Wednesday’s report maintained expectations that the Fed could start cutting rates in June. Such a move would ease pressure on economy The Fed has already signaled that it could cut rates several times this year.
The Fed’s key interest rate remains at its highest level since 2001, and it hopes to curb inflation by pushing down the economy through higher interest rates. mortgage and credit card payment.
However, interest rate easing will only occur if the Fed considers: More convincing data The inflation rate is continuing to decline towards the 2% target. Expectations of future interest rate cuts fueled a strong rally in U.S. stock markets in late October, with the S&P 500 on track for a fourth straight month of victories.
In recent days, traders have been holding off on their expectations for when the Fed will start cutting interest rates. Expectations have been boosted since March by a series of reports showing the economy continues to perform better than expected.On Thursday, another report showed the U.S. population is shrinking. The worker applied for unemployment benefits. Last week’s performance exceeded economists’ expectations.it’s the latest signal A surprisingly resilient job market.
Meanwhile, hope its solid economy That would help boost profits for U.S. companies, even if it means delaying rate cuts.
Salesforce.com on Wednesday night became one of the latest companies to report that its latest quarterly profit beat analysts’ expectations. The customer resource management software company also said it plans to start paying a quarterly dividend to investors, but also provided a revenue forecast for next year that was slightly lower than analysts expected. The company’s stock rose 1.5% after reversing earlier losses.
Best Buy rose 4.5% after reporting better-than-expected profits and sales. The company also said it has increased its dividend and is growing its paying membership base.
Hormel Foods similarly reported better-than-expected profits and revenue. The company cited broad-based growth across its brands, including Skippy Peanut Better, Chi Chi’s Salsa and Corn Nut Snacks. The company’s stock price soared 11.3%.
This helped offset a 4.8% decline in Bath & Body Works. The company, which sells fragrances, body lotions and three-wick candles, reported better-than-expected profits on the back of a strong holiday season, but said sales could be weaker next year.
Cloud computing company Snowflake nearly doubled analysts’ fourth-quarter profit forecasts after the surprise announcement that CEO Frank Slotman would step down with immediate effect. It fell by 19.6%. Slootman will be replaced by Sridhar Ramaswamy.
Chemours fell 38% after the company placed its chief executive officer and chief financial officer on administrative leave while the board’s audit committee conducted a review. The company postponed its quarterly results scheduled for Wednesday, saying it needed more time to complete its year-end reporting process.
In the bond market, the yield on the 10-year U.S. Treasury note fell to 4.22% from 4.27% late Wednesday.
The two-year bond yield, which more accurately reflects expectations for the Fed, fell to 4.61% from 4.65%. Just before the morning inflation statistics were released, it was around 4.70%.
In overseas stock markets, indexes were mixed.
Tokyo’s Nikkei stock average fell 0.1% after data showed factory output fell at the fastest pace since May 2020 in January, even though retail sales were stronger than expected. It fell.
Hong Kong’s Hang Seng shares fell 0.2%, while Shanghai shares rose 1.9%. Shenzhen’s small-cap index rose further after regulators announced new measures to support the market, including increased oversight of financial derivatives.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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