NEW YORK (AP) — U.S. stocks edged back from their records as financial markets around the world take a pause following big recent moves. The S&P 500 fell 0.2% Wednesday, a day after setting its latest all-time high. The Dow Jones Industrial Average lost 0.7%, and the Nasdaq composite was basically flat. Treasury yields ticked higher in the bond market after sinking the day before on a surprisingly weak update on consumer confidence. Chinese stocks rose again after soaring Tuesday on excitement about new stimulus measures, but they pared their gains through the day. Oil prices gave back gains.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
NEW YORK (AP) — U.S. stocks are edging back from their records Wednesday as financial markets around the world take a pause following big recent moves.
The S&P 500 was 0.2% lower in afternoon trading, a day after for the 41st time this year. The Dow Jones Industrial Average was down 261 points, or 0.6%, and the Nasdaq composite was virtually unchanged with an hour remaining in trading.
Treasury yields edged higher in the bond market after sinking the prior day on a on confidence among U.S. consumers. The worst drop in three years raised worries about the U.S. economy's durability, but it also raised expectations for the Federal Reserve to deliver another dose of through a big cut to interest rates at its next meeting.
The drop may also not be as bad as it looks, at least for financial markets. The worst losses in confidence have been concentrated among lower-income households, who have had to put more purchases on credit cards, according to Jack Ablin, chief investment officer at Cresset. But when it comes to the economy, and potential profits for companies, top earners account for more spending on non-essentials, and their confidence appears to be holding up better.
In stock markets abroad, indexes moved more modestly after jumping the day before on hopes that new stimulus measures from China would . Chinese indexes rose again Wednesday, but they pared their gains as the day progressed, while European indexes slipped. Prices for crude oil also gave back gains.
On Wall Street, Stitch Fix tumbled 38% after the online fashion styling service said its revenue in the current quarter could be 15% to 17% weaker than a year earlier. Its stock has dropped below $3 from $100 early in the pandemic.
KB Home fell 4.7% after reporting profit for the latest quarter that was just shy of analysts’ expectations. The homebuilder, though, said orders picked up in August as mortgage rates came down.
A separate report released Wednesday morning said sales of new homes across the country slowed in August, but not by as much as economists feared.
The next date on the calendar circled for a potentially big market move is next week, when the latest on the U.S. job market will arrive. Slowing hiring in the world’s largest economy has become the top concern among investors, now that from its .
While the number of layoffs remains relatively low, U.S. employers are also more hesitant to hire. Critics worry the job market could weaken further as the cumulative effects of all the past hikes to interest rates made by the Federal Reserve show themselves.
The Fed kept its main interest rate at a two-decade high for more than a year in hopes of slowing the U.S. economy enough to stifle inflation. Last week, it swung its focus toward protecting the job market and cut the federal funds rate by a larger-than-usual half of a percentage point. Critics say it may be moving too late.
A strong job market would help Cintas, which provides uniforms, fire extinguishers and other products to businesses. It rose 1.4% after reporting stronger profit for the latest quarter than analysts expected. Cintas also increased its forecasts for profit and revenue over the full fiscal year.
jumped 8.5% and was on track for its first back-to-back gain in two weeks. The stock had been struggling amid speculation about when former President Donald Trump may sell some of his shares in the company behind the Truth Social network, now that he is .
In the bond market, the yield on the 10-year Treasury rose to 3.78% from 3.73% late Tuesday. The two-year yield, which moves more closely with expectations for the Fed, edged up to 3.55% from 3.54%.
Traders are betting on a nearly 60% probability that the Federal Reserve will deliver another cut of half of a percentage point, according to data from CME Group. The has Fed traditionally moved rates by only a quarter of a percentage point at a time.
In stock markets abroad, indexes rose 1.2% in Shanghai, fell 1.3% in South Korea and slipped 0.2% in London.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
Stan Choe, The Associated Press
