The Dow Jones Industrial Average fell for the sixth straight session on Thursday, continuing a period of high volatility in a market roiled by fears that the Federal Reserve may stifle growth in its bid to keep inflation in check.
The blue-chip index dropped 103.81 points to 31730.30, or 0.3 percent. The $S&P 500 index fell 5.10 points to 3930.08, or 0.1 percent. The Nasdaq Composite Index rose 6.73 points to 11370.96, or less than 0.1 percent. All three indexes are expected to fall by at least 3.5 percent this week.
Concerns about the Federal Reserve’s withdrawal of easy monetary policies in the face of recent high inflation have put pressure on stocks.
Consumer prices climbed at a slower rate in April than in March, but still faster than economists predicted, according to data released Wednesday.
This fanned fears that the central bank might raise interest rates too quickly, stifling economic development and dragging on markets accustomed to easy monetary policy.
The yield on the benchmark 10-year Treasury note fell to 2.815 percent for the fourth trading session in a row. Bond yields and prices are inversely proportional.
Treasury yields have recently fallen, indicating that the bond-stock link may be improving. Earlier in the year, stocks and bonds fell in tandem at a pace not seen in decades.
Another inflation indicator, the producer price index, increased by 11% year over year in April. Although this was a decrease from the previous month, it was still higher than economists’ projections. Weekly unemployment claims were 203,000, almost unchanged from the prior week.
He believes that the drop in longer-dated bond yields indicates a drop in growth forecasts.
The dollar rose 0.5 percent, reaching its highest level since March 2020, according to the WSJ Dollar Index. The index compares the value of the dollar to a basket of foreign currencies.
In other developments, Beyond Meat fell $1.09, or 4.2 percent, to $25.08, after the meat-alternative firm announced a larger-than-expected loss in the most recent quarter due to higher spending.
After posting a lower loss and improving its guidance, WeWork shares gained 53 cents, or 10%, to $5.63. After the firm announced larger operational losses and suggested it may not be able to maintain its current growth rate in streaming customers, Walt Disney fell 90 cents, or 0.9 percent, to $104.31.
Meme stocks have risen. GameStop increased by $8.24, or 10%, to $89.57. To $11.20, AMC Entertainment gained 83 cents, or 8%. The stock of Bed Bath & Beyond Inc rose 18 cents, or 2%, to $9.40.
According to Dow Jones Market Data, Saudi Aramco, the state-owned oil firm, has surpassed Apple as the world’s largest company by market value. The stock of Apple dropped $3.94, or 2.7 percent, to $142.56.
After U.S. petroleum inventories grew more than expected, oil prices dipped, then recovered. Brent crude slipped 6 cents a barrel, or less than 0.1 percent, to $107.45 per barrel. Slow progress on European Union negotiations to potentially prohibit Russian oil imports also weighed on prices, according to ANZ analysts.
Overseas, the Stoxx Europe 600 index dropped 0.7 percent. The majority of key Asian benchmarks fell. The Hang Seng Index in Hong Kong sank 2.2 percent, while the Nikkei 225 in Japan fell 1.8 percent.