NEW YORK (AP) — Stock prices on the New York Stock Exchange closed mixed on its first trading day Monday after a report fueled speculation that the Federal Reserve could crack down on prices. financial markets and the economy.
The S&P 500 rose 4.09 points, or 0.1%, to end at 4,109.11. It was not listed on Friday, when data showing the strength of the US labor market raised expectations that the Fed would raise interest rates again at its next meeting.
Shares of big technology companies suffered more losses than the rest of the market, helping send the Nasdaq Composite down 3.60 points, less than 0.1%, to settle at 12,084.36. Hours earlier in the day it was down as much as 1.4%. For its part, the Dow Jones industrial average remained more stable and rose 101.23 units, or 0.3%, to close at 33,586.52.
Interest rate hikes tend to have the biggest impact on tech stocks and other high-growth stocks, with Apple and Microsoft suffering the biggest losses in the S&P 500. Apple fell 1.6%, while Microsoft lost 0. 8%
Telsa also lost 0.3% after paring its initial losses. The company slashed prices on its entire range of models in the United States in an apparent attempt to attract customers amid rising interest rates that make car loans more expensive.
The Federal Reserve has raised rates at a breakneck pace over the past year in hopes of reducing high inflation. Higher rates can do that, but only by bringing the entire economy to a screeching halt. That increases the risk of a future recession and lowers the prices of stocks, bonds and other investments.
In addition to Friday’s jobs report, which showed workers’ wage growth slowing — potentially taking pressure off inflation, a report last week showed employers are posting fewer job openings.
“This is encouraging because policymakers need to limit demand for labor for now so supply can catch up, and a decline in job offers is the most painless way to do that,” David Mericle and other economists wrote. from Goldman Sachs in a report.
Hopes of a soft landing — in which the Fed can lower inflation without triggering a recession — helped support stocks whose earnings tend to be more closely tied to the strength of the economy. Stocks of industrial companies in the S&P 500 rose 0.9%, for example, the biggest gain among the 11 sectors that make up the index. Caterpillar advanced 3%. Energy companies and commodity producers also posted gains.
In the bond market, Treasury yields held relatively steady after rising in a shortened trading session on Friday following the US jobs report. The yield on 10-year Treasury bills, which helps set rates on mortgages and other major loans, rose to 3.42% from 3.41%.
Associated Press writer Elaine Kurtenbach contributed to this report.
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