“Buckle up,” warned Jonathan Krinsky, chief market technician at financial services firm BTIG.
Stocks look to be in their most vulnerable position since their April lows given how much complacency has built up and how the rubber band has recently been “as stretched as it gets in some parts of the market,” Krinsky wrote in a research report.
Wall Street’s ultimate hope is that the U.S. economy stays in a delicate balance where it’s slow enough to convince the Fed to cut rates but doesn’t become so weak that it leads to a recession.
Treasury yields ticked higher in the bond market as traders pared bets for the number of upcoming cuts to rates by the Fed. The yield on the 10-year Treasury rose to 4.17% from 4.16% late Wednesday.
Such moves typically send a stock’s price higher, but Jabil came into the day with an already huge gain of 56.6% for the year so far. That was more than quadruple the S&P 500’s rise over the same time.
Companies are racing to develop quantum computing in order to solve complex problems beyond the reach of classical computers.
Mortgage rates have been sinking on expectations for coming cuts to rates by the Fed. KB Home’s stock finished the day with a dip of 0.6%.
All told, the S&P 500 fell 33.25 points to 6,604.72. The Dow Jones Industrial Average dropped 173.96 to 45,947.32, and the Nasdaq composite sank 113.16 to 22,384.70.
In stock markets abroad, indexes dipped in Europe following modest moves across much of Asia.
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AP Writers Matt Ott and Teresa Cerojano contributed.
