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NEW YORK (AP) – Wall Street edged away from record highs Tuesday.
The S&P 500 fell 14.61 points (0.3%) to 5,203.58, marking the third consecutive year of slight decline since hitting a record high.
The Dow Jones Industrial Average fell $31.31, or 0.1%, to $39,282.33, and the Nasdaq Composite Index fell $68.77, or 0.4%, to $16,315.70.
Stock indexes were modestly higher for most of the day, helped by some big tech stocks. Tesla rose 2.9% and Alphabet rose 0.4%. However, Nvidia’s late stock price decline ultimately led to the market’s decline. It fell 2.5%.
Some small businesses made the flashiest moves. Krispy Kreme soared 39.4% after McDonald’s restaurants announced a deal to sell the company’s donuts across the United States. It is expected to launch in the second half of this year and be rolled out nationwide by the end of 2026.
Another food company, McCormick, rose 10.5% after reporting its latest quarterly profit beat analysts’ expectations. The spice, hot sauce and condiment retailer also said its business is strong and sales growth this year is expected to be at the high end of its forecast.
Trump Media & Technology Group also rose significantly, rising 16.1%. Today was the company’s first day trading under its new ticker, “DJT,” an acronym for former President Donald Trump. The company replaced a shell company that traded on the Nasdaq after the two companies merged.
Excitement over Trump’s recent run for the White House has sent stock prices higher than what several experts say is reasonable. The company’s main asset, its platform Truth Social, has been losing money and expects it to continue doing so as it competes with rivals that likely have more users.
The overall U.S. stock market has also faced criticism that it is too expensive, although to a lesser extent than Trump Media & Technology Group.
The S&P 500 is up 9% already this year and is on track for a fifth consecutive month of wins. Excitement is building as the U.S. economy remains remarkably resilient despite high interest rates aimed at curbing inflation. Additionally, the Fed is expected to start cutting interest rates this year as inflation cools from its peak.
Vigorous stock purchases by companies themselves also supported the market. Stock buybacks by Bank of America’s corporate customers reached the fifth-highest level in the bank’s weekly history dating back to 2010, said strategist Jill Carey Hall.
But critics argue that a broader range of companies would need to achieve strong profit growth to justify the wide swings in share prices. Progress in curbing inflation has also become increasingly difficult recently, with reports this year being more grim than expected.
Still, traders widely expect the U.S. Federal Reserve to begin lowering key interest rates in June. Some believe there is a slight possibility that it will begin at next week’s meeting.
In the bond market, U.S. Treasury yields fell on mixed reports on the economy.
Orders for machinery, computers and other long-term industrial products rose in February after two months of declines, according to a U.S. government report.
But a subsequent report from the Conference Board said U.S. consumer confidence unexpectedly fell, even though economists had expected it to rise. Robust spending by U.S. consumers has been one of the keys to keeping the economy from a long-anticipated recession.
The yield on the 10-year U.S. Treasury note fell to 4.22% from 4.24% late Monday. The two-year bond yield, which more accurately reflects expectations for the Fed, fell to 4.58% from 4.63%.
In overseas stock markets, indexes rose slightly in Europe and most of Asia.
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AP Business writers Yuri Kageyama and Matt Ott contributed.
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