Wall Street Slows as S&P 500 Nears Record High/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Wall Street’s recent rally paused Thursday as the S&P 500 drifted 0.1% lower, near its record high. The Dow Jones rose slightly, while the Nasdaq fell 0.4%. Treasury yields steadied after the latest unemployment report, and notable stock moves included GE Aerospace’s 8.5% rise and Electronic Arts’ 15% drop.
Stock Market Today: Quick Looks
- S&P 500 Dips: After nearing a record, the index slipped 0.1% Thursday morning.
- Mixed Movements: The Dow gained 78 points (+0.2%), while the Nasdaq fell 0.4%.
- Treasury Yields Hold Steady: The 10-year yield edged up to 4.64%, with the Fed unlikely to cut rates next week.
- Stock Standouts: GE Aerospace surged 8.5% on strong earnings, while EA dropped 15% due to weak game performance.
- Bitcoin Near Record: Cryptocurrency prices surged, with Bitcoin hovering below $104,500.
Wall Street Slows as S&P 500 Nears Record High
Deep Look
Wall Street’s rally hit a speed bump on Thursday, with the S&P 500 slipping 0.1% after nearly breaking its all-time high the previous day. The market’s quiet tone reflects investor caution as they navigate a mix of corporate earnings, bond market stability, and speculation around Federal Reserve actions.
Stock Market Movements
The Dow Jones Industrial Average rose by 78 points, or 0.2%, as of mid-morning trading, while the tech-heavy Nasdaq fell 0.4%. The S&P 500’s slight decline followed a six-day stretch of gains in the past seven sessions, signaling a pause in Wall Street’s recent rally.
Markets abroad mirrored this measured pace, with China’s efforts to boost domestic stock prices, such as ordering pensions and mutual funds to invest more heavily, offering little long-term impact. Hong Kong’s Hang Seng Index briefly rose before ending the day 0.4% lower.
Treasury Yields and Federal Reserve Speculation
The bond market showed steadier movements, with the 10-year Treasury yield rising slightly to 4.64%, up from 4.61% on Wednesday. The two-year Treasury yield, closely tied to Federal Reserve expectations, held firm at 4.30%.
Unemployment claims released Thursday showed a modest rise, with 223,000 new applications filed last week. Although this exceeded analyst expectations, the increase fell within the recent range, underscoring a labor market that continues to perform relatively well.
Traders largely expect the Federal Reserve to maintain its interest rate at next week’s meeting, breaking a streak of three consecutive rate cuts in late 2024. Stable or lower rates have been a key factor in driving stock prices higher, though concerns about inflation remain in the background.
Key Corporate Earnings
Earnings reports drove notable stock moves on Thursday.
- GE Aerospace: The company saw an 8.5% surge, the largest gain in the S&P 500, after reporting stronger-than-expected profits for the latest quarter. Orders for airplane engines and related services rose 50% year-over-year to $12.9 billion.
- Electronic Arts (EA): The video game maker tumbled 15% after revealing disappointing revenue from its soccer game, EA Sports FC25. EA also reported 50% fewer players than anticipated for its latest Dragon Age game, contributing to its weaker performance.
- American Airlines: Despite reporting stronger-than-expected quarterly profits, shares of American Airlines fell 7.4%. The company warned of potential losses in early 2025 and issued a full-year profit forecast that missed analyst expectations.
Cryptocurrency Surges
The cryptocurrency market remained lively, with Bitcoin trading just below $104,500, following its record high of $109,000 earlier in the week. Investors remain optimistic that President Donald Trump will push for crypto-friendly policies in Washington, fueling the market’s recent surge.
Global Market Highlights
Japan’s Nikkei 225 rose 0.8%, despite a scandal involving Fuji Media Holdings. Advertising losses mounted after Masahiro Nakai, a top TV host, retired amid sexual assault allegations that rocked Japan’s entertainment industry.
Meanwhile, in Europe, markets remained relatively quiet as investors assessed ongoing earnings and economic data.
Outlook
The S&P 500 remains close to its record high, reflecting optimism about corporate earnings and economic stability. However, with the Federal Reserve’s next meeting looming and mixed earnings reports from key companies, volatility could return in the coming days. Bitcoin’s rally and the stability in bond yields also highlight diverging market forces, keeping investors on edge.
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