The S&P 500 fell 0.7% in early trade. That was deeper than his dips from the previous two days, and the most important measure for the health of Wall Street is on schedule for the longest losing series in more than a month.
The industrial average of Dow Jones fell by 107 points, or 0.2%, from 9.35 am eastern time, and the Nasdaq composite was 1% lower. All three indexes are still near their records that were set at the beginning of the week.
Stocks felt the pressure from various reports that show that the US economy could be stronger than economists thought. Although that is encouraging news for employees and for people looking for jobs, the Federal Reserve could have less chance of reducing interest rates several times in the coming months.
The Fed just delivered its first reduction of the year last week and officials had retired a number of more until the end of next year. That was crucial for Wall Street, which sent us shares to records on a sizzling run since April largely because of the expectations for many cuts. Easier rates can stimulate the economy and make investors more willing to pay high prices for shares, bonds and other investments.
But a stronger than expected economy could remove part of the urgency from the FED, especially when cutbacks on the rates entail the risk of deteriorating inflation that is already stubbornly high. If the Fed does not expect rates as often as investors, this would enable the criticism that has already been built and says that the US stock market has become too expensive after the prices have risen so quickly, so quickly. Tradeury returns ticked higher on the bond market as traders parried bets for the number of upcoming cutbacks at rates by the FED. The return on the 10-year-old treasury rose to 4.16% to 4.16% at the end of Wednesday. The two-year-old Treasury yield, which better follows the expectations for the FED, climbed sharper. One of the better economic reports on Thursday said that fewer American employees applied for unemployment benefits last week. That can be a signal that slows down the pace of dismissal.
The second report said that the American economy grew stronger in the spring than earlier thought, while the third said that orders last month the expectations of the economists past for the American manufactured goods with a relatively long service life.
On Wall Street, Carmax tumbled 19.1% for the largest loss in the S&P 500 after the seller of used cars reported a weaker profit for the last quarter than the expected analysts reported. It sold fewer vehicles in the quarter than a year earlier. It was also injured because it increased its expectations for losses by loans in previous years.
The heaviest weights on the market were large technical shares. They are the biggest superstars in the market in recent years and have worn Wall Street to record after record. But they are also confronted with some of the heaviest criticism that the frenzy about artificial intelligence technology has sent their prices too high.
Nvidia fell by 1.8%, Broadcom lost 2.9%and alphabet lowered 2.2%.
Starbucks hurled between modest profits and losses after the coffee chain had announced a $ 1 billion plan to restructure, including the closure of stores and cutting 900 non -Retail jobs. It was the most recently dropped by 0.7%.
On stock markets abroad, the indexes in Europe fell after a more muted finish in Asia.
The Dax Dax lost 1% and the CAC 0 of France fell 0.7% for two of the larger movements.
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