NEW YORK — Wall Street slipped in blended trading Thursday as the danger of high interest rates continues to petdog Big Tech stocks.
The S&P 500 fell 14.34, or 0.3%, to 4,451.14 for its 3rd straight loss. The Nasdaq composite was struck especially hard by the drop for tech stocks, and it sank 123.64, or 0.9%, to 13,748.83.
The Dow Jones Industrial Average held up muchbetter than the rest of the market duetothefactthat it has less of an focus on tech, and it increased 57.54 points, or 0.2%, to 34,500.73.
Stocks felt pressure from the bond market, where yields increased earlier in the week after a report revealed morepowerful development for U.S. services markets last month than economicexperts anticipated. Yields stayed high after a report on Thursday stated less U.S. employees used for joblessness advantages last week than anticipated.
While such reports are motivating for the economy, suggesting a long-predicted economicdownturn is not near, they might likewise keep conditions humming highly enough to push upward on inflation.
The Federal Reserve has currently treked its primary interest rate to the greatest level in more than 2 years in hopes of slowing the economy adequate to drive inflation back down to its 2% target. It’s come close, and inflation hasactually cooled from its peak above 9% last summertime. But the concern is that the last portion point of enhancement might be the hardest for the Fed.
“Yes, the economy has slowed and inflation hasactually cooled, however work continues to be a thorn in the side of the Fed, which hasactually made softening the tasks market the foundation of its inflation fight,” stated Mike Loewengart, head of design portfolio building at Morgan Stanley Global Investment Office.
High interest rates drag down on costs fo