Stock market today: Wall Street's rally runs out of gas
Wall Street is fading, and its big rally is losing momentum despite fatter-than-expected profit reports from big companies and the latest signals of a resilient economy
NEW YORK — Wall Street is fading Thursday, and its big rally is losing momentum despite fatter-than-expected profit reports from big companies and the latest signals of a resilient economy.
The S&P 500 was 0.7% lower in late trading after touching its highest level in nearly 16 months, and the Nasdaq composite flipped from an early gain to a loss of 0.6%. The Dow Jones Industrial Average was down 255 points, or 0.7%, at 35,265 with less than than 20 minutes remaining in trading.
Honeywell International was a heavy weight on the market despite reporting stronger profit for the spring than analysts expected. It dropped 5.3% after its revenue fell short of analysts' expectations, as did its forecast for earnings in the current quarter.
The dip for Wall Street put a halt to a torrid run where the Dow climbed for 13 straight days. Earlier Thursday, it seemed to be on the verge of tying a win-streak record set in 1897.
Stocks have been roaring on hopes the Federal Reserve can pull off what seemed like a long-shot bet earlier this year: successfully pull down high inflation by raising interest rates without sending the economy into a painful recession.
But critics have been saying the market's sharp move upward has been too much, too fast and that the market's growing consensus about a “soft landing” for the economy is hardly a certainty.
“The move is very explainable, but I stop short of calling it justifiable because I think it’s too early to go all in on the idea that the Fed can claim victory” over high inflation, said Bryant VanCronkhite, managing
Read more on abcnews.go.com
