Highlights
Interest rate concerns weighed on stocks again Thursday with the closely-watched US 2-year note yield threatening to break above 5 percent. The Dow Jones industrial average firmed 0.1 percent, the S&P 500 fell 0.2 percent, its fifth straight loss, and the Nasdaq was down 0.5 percent. US Treasury yields rose, oil prices edged up, while the dollar declined.
Equities followed their recent pattern as the S&P 500 started off better before fading. Another batch of hawkish comments suggesting Federal Reserve officials will be slow to cut rates weighed on the market, especially big growth stocks. New York Fed President John Williams, speaking in response to questions, declined to rule out a rate hike. Much stronger than expected Philadelphia Fed manufacturing report added to upward pressure on market rates.
Company news was mostly supportive. Managed care had a good day with an earnings beat from Elevance Health. Airlines outperformed with an analyst upgrade at JetBlue. Good results from CSX lifted rails. Las Vegas Sands was the day's featured loser after disappointing results from its Macau property. Tesla remained in the doghouse to weigh on EVs.
Among sectors, best were financials, industrials, consumer staples and communications services. Weakest were consumer discretionary, real estate and information technology. Big tech earnings are due next week, which may see a return to the market's recent bullish obsession with artificial intelligence.
Equities followed their recent pattern as the S&P 500 started off better before fading. Another batch of hawkish comments suggesting Federal Reserve officials will be slow to cut rates weighed on the market, especially big growth stocks. New York Fed President John Williams, speaking in response to questions, declined to rule out a rate hike. Much stronger than expected Philadelphia Fed manufacturing report added to upward pressure on market rates.
Company news was mostly supportive. Managed care had a good day with an earnings beat from Elevance Health. Airlines outperformed with an analyst upgrade at JetBlue. Good results from CSX lifted rails. Las Vegas Sands was the day's featured loser after disappointing results from its Macau property. Tesla remained in the doghouse to weigh on EVs.
Among sectors, best were financials, industrials, consumer staples and communications services. Weakest were consumer discretionary, real estate and information technology. Big tech earnings are due next week, which may see a return to the market's recent bullish obsession with artificial intelligence.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
