U.S. stocks are stepping back from their highest point on Friday after two weeks of gains. The S&P 500 went down 0.4%, the Dow Jones fell 0.4%, and the Nasdaq dropped 0.6% near the end of trading.
The bond market stayed steady, affecting Wall Street. When worries rise, Treasury yields go up, and stock prices fall. But when concerns ease, like after good news on inflation, stocks go up.
Good earnings reports from big U.S. companies are also helping the stock market. Even with low stock prices, companies can still make big profits.
Texas Instruments and CSX saw drops even with good earnings. Novo Nordisk and NextEra Energy had gains because of positive news for their businesses.
Reports show weaker consumer sentiment and slower business growth, but housing sales are up. The Federal Reserve is likely to keep interest rates steady to help the economy.
Stocks in Europe and Asia had mixed results. Japan raised its interest rates, while Hong Kong and Shanghai saw gains in their markets.
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AP Writers Matt Ott and Zimo Zhong contributed.
Vocabulary List:
- Sentiment /ˈsɛntɪmənt/ (noun): A view or opinion that is expressed or felt.
- Earnings /ˈɜrnɪŋz/ (noun): Money obtained in return for labor or services.
- Steady /ˈstɛdi/ (adjective): Firmly fixed supported or balanced; not shaking or moving.
- Profits /ˈprɒfɪts/ (noun): Financial gains received after expenses are paid.
- Concerns /kənˈsɜrnz/ (noun): Worries or anxieties about a situation.
- Gains /ɡeɪnz/ (noun): An increase in financial value or profit.
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