NEW YORK (AP) 鈥� Wall Street is clawing back some of its sharp losses from the prior day, its first big step back since a rally began in late October. The S&P 500 was 0.7% higher in early trading. The Dow was up 219 points, a day after falling for the first time following five straight record-setting days. The Nasdaq composite was 1% higher. Micron Technology leaped to one of the market鈥檚 bigger gains after reporting stronger results than expected. Treasury yields were lower following mixed economic reports. Easing yields have been one of the main reasons stocks have charged so high the last two months.
THIS IS A BREAKING NEWS UPDATE. AP鈥檚 earlier story follows below.
(AP) 鈥� World shares mostly fell Thursday after Wall Street hit the brakes on its big rally following disappointing corporate profit reports and warnings that the market had surged too far, too fast.
Germany鈥檚 DAX slipped 0.3% to 16,676.00 and in Paris, the CAC40 fell 0.3% to 7,559.33. Britain鈥檚 FTSE 100 edged 0.1% lower, to 7,707.00.
The future for the S&P 500 rose 0.5%. The future for the Dow Jones Industrial Average was 0.4% higher.
In Asian trading, Tokyo鈥檚 Nikkei 225 index fell 1.6% to 33,140.47, with Japanese automaker Toyota leading losses on the benchmark, falling 4%. The company said Wednesday it is over a defect that could cause airbags not to deploy, increasing the risk of injury.
That came on top of news that Toyota small-car subsidiary shipments of all its vehicles in Japan and abroad after an investigation found improper safety testing involving 64 models, including some made for Toyota, Mazda and Subaru. Japanese transport ministry officials raided Daihatsu's offices on Thursday.
Australia鈥檚 S&P/ASX 200 slipped 0.5% to 7,504.10. South Korea鈥檚 Kospi shed 0.6% to 2,600.02. Hong Kong鈥檚 Hang Seng added less than 0.1% to 16,621.00 and the Shanghai Composite gained 0.6% to 2,918.71.
India鈥檚 Sensex and Bangkok鈥檚 SET gained 0.3%.
Wednesday鈥檚 losses on Wall Street were widespread, and roughly 95% of companies within the S&P 500 declined.
The S&P 500 slumped 1.5% to 4,698.35 for its worst loss since beginning a monster-sized rally shortly before Halloween. The Dow Jones Industrial Average dropped 1.3% to 37,082.00 from its record high, while the Nasdaq composite sank 1.5% to 14,777.94.
FedEx tumbled 12.1% for one of the market鈥檚 biggest losses after reporting weaker revenue and profit for the latest quarter than analysts expected. It also now expects its revenue for its full fiscal year to fall from year-earlier levels, rather than being roughly flat, because of pressures on demand.
Still, a pair of reports showed the U.S. economy may be in stronger overall shape than expected. Both confidence among consumers in December and in November improved more than economists had expected.
Encouraging signs that inflation is cooling globally also continue to pile up. In the United Kingdom, inflation in November to 3.9% from October鈥檚 4.6% rate, reaching its lowest level since 2021.
Easing rises in prices are raising hopes that central banks around the world can pivot in 2024 from their campaigns to hike interest rates sharply, which were meant to get inflation under control. For the Federal Reserve in particular, the general expectation is for its main interest rate to fall by at least 1.50 percentage points in 2024 from its current range of 5.25% to 5.50%, which is its highest level in more than two decades.
Treasury yields have been tumbling since late October on such hopes, and they fell again following the U.K. inflation report.
The yield on the 10-year Treasury rose to 3.86% from 3.85% late Wednesday.
In other dealings, U.S. benchmark crude oil was up 22 cents at $74.44 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, gained 26 cents to $79.96 per barrel.
The U.S. dollar fell to 143.25 Japanese yen from 143.56 yen. The euro fell to $1.0938 from $1.0943 late Wednesday.
The Associated Press
