NEW YORK, April 18 (Xinhua) — U.S. stocks ended mixed on Thursday amid concerns that inflation is no longer cooling and the Federal Reserve could ease back on interest rate cuts.
The Dow Jones Industrial Average rose 22.07 points, or 0.06 percent, to 37,775.38. The S&P 500 declined by 11.09 points, or 0.22 percent, to 5,011.12, registering its longest losing streak since last October. The Nasdaq Composite Index fell 81.87 points, or 0.52 percent, to 15,601.5.
Seven of the 11 primary S&P 500 sectors ended in green, with communication services and utilities leading the gainers by going up 0.66 percent and 0.61 percent, respectively. Meanwhile, technology and consumer discretionary led the laggards by dropping 0.89 percent and 0.71 percent, respectively.
Atlanta Federal Reserve President Raphael Bostic said on Thursday that inflation is expected to reach the U.S. central bank’s 2 percent target at a slower pace than anticipated by many, though he is comfortable with this pace.
Bostic emphasized that he is not in a rush to achieve the target, highlighting the ongoing job creation and wage increases in the economy. “I’m of the view that things are going to be slow enough this year that we won’t be in a position to reduce our rates towards … the end of the year,” he said.
Also on Thursday, New York Fed President John Williams joined other U.S. rate-setters in adopting a cautious approach towards rate cuts. “I definitely don’t feel urgency to cut interest rates” given the strength of the economy, Williams said. “I think eventually … interest rates will need to be lower at some point, but the timing of that is driven by the economy.”
U.S. bond yields, which have weighed on sentiments in stock market, rose again on Thursday. The 10-year Treasury yield was up, hovering around 4.65 percent.
On the corporate front, the focus now turns to Netflix as it becomes the first of the mega-cap tech companies to report earnings after the closing bell on Thursday. Many see this update as a crucial test for the stock market this earnings season, especially considering the significant role mega-caps play in driving market trends. With over 12 percent of S&P 500-listed companies having reported their earnings, data from FactSet shows that 73 percent of these companies have exceeded Wall Street’s expectations for their performance.
Source Agencies
