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Stock market today: Wall Street slinks back from its records – The Associated Press

NEW YORK (AP) — U.S. stock indexes are falling back from record highs. record Concerns about high interest rates added pressure to the market on Wednesday.

The S&P 500 was down 0.4% in afternoon trading, a day after hitting a record high. As of 2:20 p.m. Eastern time, the Dow Jones Industrial Average was down 213 points, or 0.5%, and the Nasdaq Composite was down 0.4% after setting a record.

The index was close to flat early in the day, but its decline slowed after the U.S. Federal Reserve released the minutes of its last policy meeting. Minutes showed disappointment for the market Fed officials suggested Following some discouraging news reports earlier in the year, it is “likely to take longer than previously thought” to fully bring inflation under control.

And even though Fed Chairman Jerome Powell said after the meeting that the Fed was more likely to cut rates than raise them, the minutes said a “range of participants” were open to raising rates if inflation worsened.

One of the market’s worst losses came from Target, which fell 8% after the retailer reported its latest quarterly profit. that wasn’t enough Analyst forecasts. It also provided a range of expected future profits as customers cut back on non-essential purchases, with the midpoint coming in below analysts’ expectations. Earlier this week, Target said: price reduction It offers thousands of daily necessities to attract customers still struggling with high levels of inflation.

Lululemon Athletica fell 7.1% after its chief product officer Soon Cho announced he would leave the company this month to “pursue other opportunities.” The company announced a new organizational structure that does not replace the role of chief product officer.

Those helped counter a 23.7% jump in Petco Health & Wellness, which reported results and revenue for the latest quarter that beat analysts’ concerns.

Discount clothing and home goods retailer TJX rose 4.1% after reporting better-than-expected profits. The company, which owns TJ Maxx and Marshalls, also raised its full-year earnings-per-share forecast, saying pricing was attracting customers.

The main profit report for the day will be released after the close of trading. Analysts expect Nvidia to report its latest breakthrough quarter. Rapid increase in chip demand Used in artificial intelligence technology.

Nvidia’s stock is the third-fastest growing stock on Wall Street, making it one of the most influential stocks on the market. In order to sustain the stock market enthusiasm surrounding AI, it is necessary to continue producing results.

In the bond market, the yield on the 10-year Treasury note rose to 4.42% from 4.41% late on Tuesday. The yield on the 2-year note, which moves more in line with Fed expectations, rose a little more, rising to 4.87% from 4.84%.

Helping to cap the rise in yields came tough remarks in the minutes of the Fed’s latest meeting, ahead of the recent release of several reports showing inflation and parts of the U.S. economy softening. That’s what was served. These reports have reignited hopes that the Fed can successfully raise interest rates. lower key interest rates At least once this year.

Fed officials said in recent speeches that while the reports are encouraging, they need several more months of improving data before they can lower the federal funds rate from its highest level in more than two decades.The Fed is trying to walk the tightrope between slowing the economy through interest rates high enough to keep inflation in check, but not so high as to trigger a deep recession.

Rising interest rates are making everything from credit card bills to car payments more expensive. Mortgage rates are also high, and a report on Wednesday showed existing home sales last month were weaker than economists expected.

Bank of America strategist Athanasios Bambakidis said central banks around the world are keen to cut interest rates, but given the strength of the economy and high inflation, “it may not be a huge cut.” That’s what it means. He said in a Bank of America Global Research Report that he expects interest rate cuts to be modest and may be slower than financial markets expect.

In overseas stock markets, indexes in Europe and most of Asia declined slightly.

London’s FTSE 100 index fell 0.5 percent after the Office for National Statistics released stronger-than-expected data. inflation rate Expectations for a June interest rate cut were undermined. Tokyo’s Nikkei Stock Average fell 0.8%. Japan reported The trade deficit increased last month.

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AP writers Matt Ott and Zimo Zhong contributed.

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