Tech weighs on Wall Street
Most of Wall Street rose on Wednesday, but drops for some influential technology stocks pulled the market lower.
The S&P 500 slipped 0.2% for its eighth loss in 11 days. The Dow Jones Industrial Average dipped 13 points, or less than 0.1%, and the Nasdaq composite fell 0.7%.
Three out of every five stocks within the S&P 500 climbed, and the index trimmed an early drop of 0.7% after a report said US manufacturing grew last month at a slightly slower speed than economists expected. The survey from the Institute for Supply Management also said prices were increasing at a slower pace.
Bond yields ease after manufacturing data
The data could take some upward pressure off inflation, which in turn could make the Federal Reserve less likely to raise interest rates multiple times this year. Following the report, the yield on the 10-year Treasury bonds pulled back from a peak near 4.50% in the morning and fell to 4.47%.
That offered some relief because higher yields make it more expensive for businesses and households to borrow money and in turn can slow the economy. Higher yields also tend to undercut prices for stocks and other investments. Yields have been on the rise since the war with Iran began because of worries about high inflation caused by expensive oil.
The heaviest weights on the market were stocks that had soared earlier in the euphoria around artificial-intelligence technology. Such stocks have been zigzagging in recent weeks because of worries that they had become too expensive. They also have big influence on the S&P 500 and other indexes because they've grown so huge.
All told, the S&P 500 slipped 16.13 points to 7,483.23. The Dow Jones Industrial Average dropped 13.96 to 52,305.24, and the Nasdaq composite fell 173.69 to 26,040.03.
Gold rebounds
Gold's price recovered from an early fall. It briefly sank below $US3,980 per ounce overnight, down from more than $US5,300 per ounce early this year. When Treasurys pay more in interest, investors become less willing to pay high prices for investments. That includes gold, which pays its holders nothing.
But the weaker-than-expected manufacturing report and ensuing easing of Treasury yields sent gold back up 1.1% to settle at $US4,082.40 per ounce.
Oil keeps falling
In the oil market, prices sank on hopes that the United States and Iran may ultimately end their war and reopen the Strait of Hormuz to oil tankers delivering crude. The price for a barrel of Brent crude, the international standard, fell 1.9% to $US71.57.
Global markets mixed
Indexes were mixed in Europe and Asia.
South Korea's Kospi fell 2% for one of the world's biggest moves. It's been one of the world's brightest stars thanks to euphoria around SK Hynix and other AI stocks, and the index is still up 97% for the year so far.
In Tokyo, the Nikkei 225 rose 0.6% after the Japanese yen fell to a 40-year low against the US dollar.
