Market Momentum Slows as Stocks Drift Near Record Highs
The US stock market is experiencing a moment of calm, with the S&P 500 hovering just below its all-time high. After six days of gains, the index slipped 0.1% in early trading, while the Dow Jones Industrial Average rose 78 points, or 0.2%. The Nasdaq composite, however, fell 0.4%.
Global Markets React to China’s Latest Move
China’s efforts to boost its stock market have had a limited impact, with the Hang Seng index in Hong Kong ending the day 0.4% lower. The move, which involved ordering pensions and mutual funds to invest more in domestic stocks, briefly lifted stocks in Hong Kong but ultimately failed to sustain the momentum.
Treasury Yields Hold Steady
In the US bond market, Treasury yields have stabilized, providing a sense of relief for investors. The yield on the 10-year Treasury note rose to 4.64% from 4.61% late Wednesday, while the two-year Treasury yield held steady at 4.30%. This stability has helped to calm the stock market, which has been sensitive to fluctuations in bond yields.
Economic Data: A Mixed Bag
The latest report on the US economy showed a slight increase in unemployment benefits claims, but the numbers remained within a modest range established in recent months. According to Chris Larkin, managing director at E-Trade from Morgan Stanley, “employment continues to highlight US economic outperformance.” However, traders do not expect the report to influence the Federal Reserve’s decision on interest rates at its upcoming meeting.
Company Earnings: Winners and Losers
In the world of corporate earnings, video game maker Electronic Arts took a hit, dropping 15% after reporting a slowdown in revenue related to its soccer game. On the other hand, GE Aerospace soared 8.5% after reporting stronger-than-expected profits. The company, which split off from General Electric last year, saw orders for its airplane engines and services jump 50% from a year earlier.
Airlines Struggle Despite Strong Earnings
American Airlines, despite reporting stronger profit and revenue than expected, lost 7.4% due to concerns over its forecast for the first quarter of 2025. The company’s profit outlook for the full year also fell short of analysts’ expectations.
Global Markets: Japan’s Nikkei 225 Rises
In Japan, the Nikkei 225 index gained 0.8% despite a sharp drop for Fuji Media Holdings following a scandal involving a top TV host and former pop star. The incident has triggered a wave of lost advertising at one of the networks where he worked.
Cryptocurrency Market: Bitcoin Holds Steady
In the cryptocurrency market, bitcoin is sitting just below $104,500, according to CoinDesk. The digital currency had set a record above $109,000 on Monday, fueled by hopes that President Donald Trump will make Washington friendlier to the industry.
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