Stock market today: Wall Street is mixed as its big rally cools some more
Stocks are mixed as Wall Street’s red-hot rally this year cools a bit more
NEW YORK — Stocks are mixed Thursday as Wall Street’s red-hot rally for the year cools a bit more.
The S&P 500 was 0.2% lower in midday trading and on pace for a third straight loss after hitting a 16-month high. The Dow Jones Industrial Average was down 40 points, or 0.1%, at 35,242, as of 11:30 a.m. Eastern time, and the Nasdaq composite was 0.1% higher.
A day earlier, U.S. stocks tumbled to their worst loss in months. While the drop came after Fitch Ratings downgraded the U.S. government’s credit rating, several analysts say they expect the move to have minimal impact on financial markets. U.S. Treasury debt is the cornerstone of the global financial system, but the downgrade by itself likely won’t push any investors to dump theirs.
The big questions remain whether the economy will avoid a recession, how corporate profits will do and where interest rates are heading. Hanging over them all is whether the stock market’s big run this year was overdone, as critics suggest.
Treasury yields in the bond market continued to march higher Thursday, putting more pressure on the stock market. The yield on the 10-year Treasury rose to 4.16% from 4.09% late Wednesday and from 2.75% a year ago.
Higher yields mean bonds are paying more in interest, which can peel buyers away from stocks. They also make borrowing more expensive for companies, crimping their profits.
Yields have climbed as the economy has remained remarkably resilient despite much higher interest rates meant to drive down inflation. The U.S. government also continues to borrow heavily.
In the latest reading on the economy, a report showed that the number of workers applying for unemployment
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