NEW YORK — Stocks slipped Monday following the newest signal that the economy stays strong, which might hold-up the cuts to interest rates that Wall Street desires.
The S&P 500 fell 15.80 points, or 0.3%, to 4,942.81 from the all-time high set Friday. The Dow Jones Industrial Average dropped 274.30, or 0.7%, to 38,380.12, and the Nasdaq composite edged down by 31.28, or 0.2%, to 15,597.68.
Earnings season is near its midpoint, and approximately half the business in the S&P 500 have reported their newest results, consistingof numerous of the market’s most prominent. Estee Lauder leapt 12% after it reported muchbetter profits and earnings than experts anticipated. McDonald’s, ontheotherhand, fell 3.7% inspiteof reporting morepowerful revenue than anticipated. Its earnings for the newest quarter fell simply short of projections.
Companies that haveactually been missingouton experts’ approximates for profits this reporting season haveactually been seeing their stocks get penalized even more than normal, according to strategists at Bank of America.
Stocks broadly felt pressure from another dive for yields in the bond market. They increased as traders on Wall Street postponed their expectations for when the Federal Reserve will start cutting its primary interest rate.
The Fed hasactually tugged the federal funds rate to its greatest level giventhat 2001 to bring down high inflation. High rates deliberately sluggish the economy by making loaning more costly and injuring financialinvestment rates.
Federal Reserve Chair Jerome Powell stated onceagain in an interview broadcast Sunday that the Fed might cut interest rates 3 times this year duetothefactthat inflation hasactually been cooling. But he likewise showed onceagain in the interview on “60 Minutes” that the Fed is notlikely to start in March, as numerous traders had earlier hoped.
Following the interview, traders pressed out some bets for t