US stocks fell after Fed’s Powell failed to provide interest rate guidance

Wall Street stocks retreated from their record highs early Thursday after Federal Reserve Chairman Jerome Powell failed to provide new policy signals, leaving investors to rely on older data to shape sentiment and markets digesting solid gains from Delta and PepsiCo amid a lack of economic data due to the government shutdown.

US stocks have risen since the government shutdown began on October 1. The shutdown has delayed major releases on inflation and the labor market.

“Even the most bullish markets take a break sometimes,” says Steve Sosnick of Interactive Brokers.

About 25 minutes into trading, the Dow Jones Industrial Average was down 0.3 percent at 46,481.01.

The broad S&P 500 fell 0.2 percent to 6,741.66, while the tech-rich Nasdaq Composite Index fell 0.3 percent to 22,985.65.

Both the S&P 500 and the Nasdaq closed at records on Wednesday. “There’s not a lot of fresh news this morning, no real catalysts,” Sosnick said. “We are not receiving economic reports and at some points the rhythm of the market is a little bit disturbed in that respect.” Among individual companies, Delta Air Lines rose 6.2 percent after reporting higher profits and providing a robust demand outlook. Executives said there has been no significant effect on travel as a result of the closure.

PepsiCo climbed 1.3 percent after reporting better-than-expected results. The company pointed to “improved momentum” in North American beverages.