NEW YORK (AP) — U.S. stocks are trending lower. all-time high On Monday, momentum was coming from Wall Street's long record-breaking rally.
The S&P 500 fell 0.5% in intraday trading, snapping a six-week winning streak, the longest this year. As of 11:15 a.m. ET, the Dow Jones Industrial Average was down 325 points, or 0.8%, from its own record, also set on Friday, and the Nasdaq Composite Index was down 0.4%.
Trading was mixed in markets around the world. Oil prices rose to recover some of last week's steep declines, while U.S. Treasury yields rose and stock indexes fell mainly in Europe after a mixed finish in Asia.
Rising yields helped lower stocks that are more vulnerable to rising interest rates, such as high-dividend companies and the housing industry. Of the 11 sectors that make up the S&P 500 index, real estate owners had the biggest decline, with homebuilders Lennar and DR Horton both down at least 3%.
The decline means at least a pause in Wall Street's rally to a record built largely on optimism that the U.S. economy will hold up. perfect escape route from Worst inflation in a generationsomething that ends without pain recession It may be inevitable that many investors will be concerned. Now with the Federal Reserve lower interest rates There is hope among optimists that stock prices could rise further to keep the economy strong.
But critics warn that the stock is too expensive, given that the company's shares are rising faster than company profits.
That puts pressure on companies to deliver profit growth commensurate with their stock prices, and this week more than 100 S&P 500 companies are expected to release details about their summer results. This includes major companies such as AT&T, Coca-Cola, IBM, General Motors, and Tesla.
Tesla fell 1.1% before the report was released. The company's stock price has been volatile recently, including a major crash. Latest information on the long-awaited robotaxis It contained less detail than investors had hoped.
Boeing released its latest financial results on Wednesday. Shares rose 3.2% after reaching an agreement with the union representing striking machinists. contract proposal. Union members could vote on the deal on Wednesday, potentially ending a costly strike that has disrupted aircraft production for more than a month.
Spirit Airlines soared 56.5% after being able to extend its credit card processing contract. To that day, the company's stock has fallen 91% so far this year after plans to merge with JetBlue were scrapped.
Trump Media & Technology Group rose 2.4% to above $30, continuing its strong performance since briefly falling below $12 last month. The company behind former President Donald Trump's platform Truth Social remains in the red, but its stock price is often driven more by the perception of Trump's re-election chances than anything else.
In the bond market, the yield on the 10-year U.S. Treasury rose to 4.16% from 4.08% late Friday.
There hasn't been much economic news this week that will move U.S. Treasury yields. A preliminary update on U.S. business activity is expected to be released on Thursday. The Bank of Canada is also expected to announce its latest decision on interest rates on Wednesday, which could result in a 0.5 percentage point cut.
Overseas stock market indexes were mixed after China's central bank cut lending rates several times. Lower interest rates could help ease pressure on borrowers, especially property developers who suffered under a crackdown on excessive borrowing several years ago. However, the impact on market sentiment appears to be short-lived.
Stock prices rose 0.2% in Shanghai, but fell 1.6% in Hong Kong. Chinese stocks have soared and fallen sharply in recent weeks. The world's second-largest economic slowdown has raised hopes of a massive stimulus package from the Chinese government and central bank, but questions remain over how effective it will be.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
