The two-year Treasury yield, which more closely follows expectations for the Fed, fell to 4.93% from 4.97%.ĪP Business Writers Joe McDonald and Matt Ott contributed to this report.Most stock quote data provided by BATS. It helps set rates for mortgages and other important loans. In the bond market, the yield on the 10-year Treasury slipped to 4.18% from 4.20% late Monday.
The Nikkei 225 rose 0.6% after Japan reported unexpectedly strong growth in its economy during the spring. In the U.K., data showed wages for workers are growing at a strong pace, which threatens to add upward pressure on its already high inflation. Also Tuesday, Russia’s central bank raised its main lending rate in an emergency move to strengthen the ruble after the currency reached its lowest value since early in the war with Ukraine. In stock markets abroad, indexes slumped in Europe after falling 1% in Hong Kong and 0.1% in Shanghai. Other investors often try to copy the famed investor's moves, and D.R. Stocks of homebuilders were bouncing between gains and losses after Warren Buffett's Berkshire Hathaway disclosed it bought stakes in several of them. The home improvement retailer said it’s seeing continued pressure on some types of big-ticket projects. Home Depot gained 0.3% after it topped expectations for both revenue and profit, though it's feeling the effects of much higher interest rates. It dropped 9.7% after it said its CEO is stepping down, effective immediately.Įlsewhere on Wall Street, more reports on corporate profits that came in better than expected helped to limit the market’s losses. The largest loss came from Discover Financial Services. Smaller and midsized banks have been under particularly scrutiny from investors and credit-rating analysts, and Ke圜orp, Comerica and Citizens Financial Group all fell at least 3% for some of the heavier losses in the S&P 500. Miner Freeport-McMoRan fell 2.9%, and Exxon Mobil's 1.8% drop was one of the heavier weights on the index.īanks were also falling, continuing a rocky run since the high-profile failures of several during the spring that were caused in part by higher interest rates. The declines meant stocks of energy and raw-material producers were among the biggest losers in the S&P 500. Prices also fell for Brent crude, the international standard, and for copper. Treasury yields initially rose following the retail sales report, approaching their highest levels since the 2007-09 Great Recession, before easing.Ī faltering Chinese economy could mean less demand for oil and other commodities. “Numbers like today’s just make it more likely that rates will remain higher for longer, even if the Fed doesn’t hike them next month,” said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office. High rates work by bluntly dragging on the entire economy and hurting prices for investments. The Fed has already hiked its key interest rate to the highest level in more than two decades. But on the downside for markets, it could also raise the Federal Reserve’s resolve to keep interest rates high in order to fully grind down inflation. economy can keep growing and avoid a long-predicted recession. The strong retail sales report raises hopes that the U.S.
consumer is showing few signs of slowing down.” retail sales are charging ahead, and a lot of that may be on charge cards,” said Brian Jacobsen, chief economist at Annex Wealth Management.
retailers accelerated by more in July than economists expected. A report on Tuesday showed growth for sales at U.S. In the U.S., the economy has remained more resilient than expected despite higher interest rates. The pullback follows a gangbusters first seven months of the year that critics called overdone. Worries about the knock-on effects for the rest of the global economy are weighing on Wall Street, where stocks have already been retrenching in August. But China’s recovery has faltered so much that it unexpectedly cut a key interest rate on Tuesday and skipped a report on how many of its younger workers are unemployed. Eastern time, and the Nasdaq composite lost 0.7%.Ĭoming into this year, the expectation was that China's economy would grow enough after the government removed anti-COVID restrictions to prop up a global economy weakened by high inflation. The Dow Jones Industrial Average fell 274 points, or 0.8%, at 35,033, as of 11:25 a.m. The S&P 500 sank 0.8% in midday trading after data showed a deepening slump in July for the world's second-largest economy. NEW YORK (AP) - Stocks worldwide are falling Tuesday as China’s faltering recovery raises worries for the rest of the global economy.
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