Stocks on Wall Street dipped Friday as worries about interest rates overshadowed an encouraging start to earnings reporting season for big U.S. companies, the Associated Press states.
The S&P 500 fell 8.58 points, or 0.2%, to 4,137.64 after giving up an early gain. Boeing was one of the heaviest weights on the S&P 500. Its stock slid 5.6% after the aircraft maker said Thursday that production and delivery of a “significant number” of its 737 Max planes could be delayed because of questions about a supplier’s work on the fuselages.
The Dow Jones Industrial Average lost 143.22, or 0.4%, to 33,886.47, while the Nasdaq composite sank 42.81, or 0.4%, to 12,123.47. High-growth stocks tend to be among the most hurt by high interest rates, and Big Tech stocks were among the heaviest weights on the S&P 500. Microsoft fell 1.3%.
Traders have built bets that the Fed will once again raise interest rates at its next meeting in May, instead of taking its first pause in more than a year. Additionally, consumer expectations for increased inflation are on the rise, which could be troublesome, as the Fed has long feared entrenched expectations of high inflation could lead to a vicious cycle that keeps it high.
All the worries helped push Treasury yields higher. The 10-year Treasury yield rose to 3.51% from 3.45% late Thursday. It helps set rates for mortgages and other important loans. The two-year Treasury yield moves more on expectations for the Fed, and its gain was sharper, up to 4.10% from 3.97%.
