New York, NY – Stocks in the United States faced another day of losses as concerns over rising interest rates and a sell-off in Salesforce dampened investor sentiment on Thursday. The Dow Jones Industrial Average dropped nearly 300 points, following a loss of over 400 points the previous day. The S&P 500 and the Nasdaq Composite also experienced declines, falling 0.2% and 0.3%, respectively.
These losses come as worries about potential rate hikes persist, fueled by data showing less inflation cooling than desired by the Federal Reserve. The disappointment in Nvidia’s earnings, which were expected to boost the market, added to the negative investor sentiment.
The bond market saw yields rise to their highest levels since early May, with the 10-year Treasury yield surpassing 4.5%. Despite a slight retreat on Thursday, the benchmark yield remained above 4.6%.
Salesforce’s poor performance raised concerns about companies impacted by the AI boom, as its shares plummeted 15% after announcing a slowdown in sales growth. Additionally, the US economy’s growth in the first quarter was revised down to an annualized rate of 1.3%, below the initial estimate of 1.6%.
Retail earnings before the bell provided insights into consumer behavior and the overall economic health. Kohl’s shares tumbled following a surprise quarterly loss and lowered sales forecast, while Best Buy reported a larger-than-expected drop in comparable sales, reflecting a shift in consumer spending habits.
The market’s reaction to these events underscores the ongoing challenges and uncertainties facing investors amid a backdrop of economic data and corporate performances. As developments continue to unfold, the resilience and adaptability of both businesses and consumers will play a crucial role in shaping the future trajectory of the financial markets.