Stock market today: Strong profit reports support stocks a day after Wall Street’s sharp tumble
Stocks are holding steadier a day after skidding to sharp losses on worries that interest rates will stay high for months longer than hoped
NEW YORK — U.S. stocks are holding steadier Wednesday, a day after skidding to sharp losses on worries that high interest rates may stick around for months longer than hoped.
The S&P 500 was 0.5% higher in afternoon trading after tumbling 1.4% on Tuesday. A hotter-than-expected report on inflation forced investors to delay forecasts for when the Federal Reserve may begin cutting interest rates, potentially into the summer. Expectations for such cuts are a big reason stocks rallied to records recently.
The Dow Jones Industrial Average was edging higher by 49 points, or 0.1%, after dropping 524 points for its worst loss in nearly 11 months. The Nasdaq composite was 0.8% higher, as of 1:54 p.m. Eastern time.
The smallest stocks, which took the hardest hit from worries about higher interest rates on Tuesday, bounced back more than the rest of the market. The Russell 2000 index jumped 2%.
Helping to keep things steadier was a calmer bond market. Treasury yields were easing after shooting upward a day earlier on expectations the Fed would keep rates high for longer. The central bank has already jacked its main interest rate to the highest level since 2001 in hopes of slowing the overall economy just enough to grind high inflation down to its target.
The yield on the 10-year Treasury edged down to 4.25% from 4.32% late Tuesday. It’s still well above its 3.85% level at the start of this month.
DaVita jumped 8% for one of the S&P 500’s larger gains after the health care company reported stronger profit and revenue for the latest quarter than analysts expected.
Most companies in the S&P 500
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