Stock market today: Wall Street falls after profit warnings, strong economic data

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NEW YORK (AP) — Wall Street fell in mixed trading after some big-name companies warned about an uncertain global economy hitting their upcoming profits. Reports also showed Thursday that the U.S.

economy continues to storm ahead despite much higher interest rates that have already lashed the stock market. The S&P 500 lost 1.2%. Another steep fall for Big Tech dragged on the market and sent the Nasdaq composite to a market-leading loss of 1.8%. The Dow Jones Industrial Average fell 251 points. Treasury yields fell after erasing earlier gains. The yield on the 10-year Treasury dropped to 4.84%.

Investors may have been spooked by the company’s warning that it’s seen some initial softness in advertising due to the latest Israel-Hamas war, and analysts said the company gave a wider range than it has in the past for its forecast of upcoming revenue. The yield on the 10-year Treasury fell to 4.84% from 4.96% late Wednesday. Earlier in the morning, it had neared its highest level since 2007. Yields swung following a deluge of reports on the economy.

Thursday’s strong economic reports show the U.S. economy is clearly not in a recession. But Wall Street is more concerned about what will happen rather than what’s in the past, and the worry is that a solid economy could put continued upward pressure on inflation. That in turn could push the Fed to keep rates high for a long time to defeat high inflation. And that would mean eventual weakness for the economy and corporate profits.

 

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