Wall Street edged lower Thursday despite solid data on the US economy, with investors increasingly concerned about the impact of President Donald Trump’s trade war policies. The S&P 500 slipped 0.2% after a rollercoaster day, while the Dow Jones Industrial Average dropped by 11 points and the Nasdaq composite fell 0.3%.
The news came as more data arrived to suggest the US economy remains solid for now. A report showed slightly fewer US workers filing for unemployment benefits than expected, while sales of previously occupied homes were stronger than economists predicted. However, Federal Reserve Chair Jerome Powell cautioned that high uncertainty is making it difficult to forecast future developments.
Accenture’s stock fell sharply, despite a better-than-expected earnings report, as investors worry about the impact of government spending cuts on the company’s revenue. The US government accounted for 17% of Accenture’s North American revenue last year, and its stock sank 7.3%.
Analysts expect the S&P 500 to bounce higher in the short term, particularly after Fed officials hinted at possible interest rate cuts this year. However, they also warn that the economy’s growth is expected to slow more sharply in the second half of the year, pushing inflation upward and creating a “stagflation” scenario.
In other markets, London’s FTSE 100 fell 0.1%, while German stocks in the DAX lost 1.2%. The Hong Kong Hang Seng index plummeted 2.2% due to tech-related stock pressure.
The yield on the 10-year Treasury decreased to 4.23% from 4.25% late Wednesday, indicating a slight easing of interest rate pressures.
Source: https://apnews.com/article/stocks-markets-rates-tariffs-crypto-7f9a462fd6fbb1943c7c94721ada068b