Stock market today: An ugly April for Wall Street is closing with some more losses
Stocks are falling after the latest hotter-than-forecast reading on the economy raised more worries about inflation and interest rates staying high
NEW YORK — U.S. stocks are falling Tuesday after the latest hotter-than-forecast reading on the economy raised more worries about inflation and interest rates staying high.
The S&P 500 was 0.7% lower in midday trading and on track to close out its first losing month in the last six. It's lost momentum since setting records through the early part of the year, and April is on pace to be its worst month since September.
The Dow Jones Industrial Average was down 313 points, or 0.8%, as of 11:15 a.m. Eastern time, and the Nasdaq composite was 0.8% lower.
Stocks have been struggling as traders have largely given up on hopes that the Federal Reserve will deliver multiple cuts to interest rates this year. A string of reports showing inflation remains stubbornly high has sent Treasury yields climbing in the bond market, which in turn has cranked up the pressure on stocks.
Treasury yields rose again Tuesday after a report showed U.S. workers won bigger gains in wages and benefits than expected during the first three months of the year. While that’s good news for workers and the latest signal that the job market remains solid despite high interest rates, it feeds into worries that upward pressure remains on the economy and inflation.
The yield on the 10-year Treasury rose to 4.67% from 4.61% just before the report’s release. The two-year Treasury yield, which more closely tracks expectations for the Fed, rose back above the 5% level to 5.02% from 4.97% late Monday.
No one expects the Federal Reserve to change its main interest rate on Wednesday, when it finishes its latest meeting.
Read more on abcnews.go.com
