Stock market today: Wall Street gives back some of its gains as its rally loses momentum
By The Associated Press on August 16, 2024.
NEW YORK (AP) – Stocks are giving back some of their big gains from earlier in the week as Wall Street’s rally loses some steam. The S&P 500 was 0.3% lower early Friday and on track for its first drop in seven days. The Dow Jones Industrial Average was off 69 points, or 0.2%, and the Nasdaq composite was down 0.4%. Treasury yields fell in the bond market after a report showed homebuilders broke ground on fewer projects last month. The weaker-than-expected report tossed some cold water on the market following a flurry of better-than-expected data on the economy this week. THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below. Japanese stocks led the gains in World markets Friday after Wall Street rallied to one of its best days of the year as data showed the U.S. economy is holding up better than expected, with particular credit going to the country’s shoppers. European markets were mostly higher. Germany’s DAX rose 0.5% at 18,268.78 and the CAC 40 in Paris was up 0.2% to 7,440.64. In London, the FTSE 100 shed 0.3% to 8,326.47 after U.K. retail sales rebounded from a 0.9% decline in June to a 0.5% increase in July, according to the Office for National Statistics. Futures for the S&P 500 and for the Dow Jones Industrial Average both edged 0.1% higher. In Tokyo, the Nikkei 225 ended a week of gains with the index surging 3.6% to 38,062.67, setting the stage for its best week in four years. It rebounded from the large selloff last week, where the higher interest rate from the Bank of Japan made investors who had borrowed in yen and invested in dollar assets sell their holdings to cover the higher costs in the “carry trades” deals. The yen went weaker against the greenback this week. The dollar fell slightly to 148.72 yen from 149.27 yen on Friday trading, but it was hovering around 146 yen during the previous week. The Hang Seng in Hong Kong added 1.9% to 17,430.16, while the Shanghai Composite index edged 0.1% higher at 2,879.43. Chinese central bank governor Pan Gongsheng said in an interview with Chinese state media on Thursday that it is developing new policies aimed at supporting economic growth in the second half of the year. These include accelerating improvements to the central banking system and placing greater emphasis on the financial technology market. He also said the overall cost burden of local government debt has seen a significant drop. Meanwhile, e-commerce giants’ reports also drew investors’ attention, with the tech giant Alibaba Group Holding seeing revenue grow 4% in the second quarter. Though missing estimates, its Hong Kong-listed shares still grew 4.8% on Friday. Another e-commerce company, JD.com, saw its shares up 8.9% after it reported forecast-beating quarterly profits. In South Korea, the Kospi jumped 2% to close at 2,697.23. Australia’s S&P/ASX 200 advanced 1.3% to 7,971.10. On Thursday, the S&P 500 jumped 1.6% to 5,543.22 for its fourth-best day of the year and its sixth straight gain as the U.S. stock market rights itself following a scary few weeks. The Dow Jones Industrial Average rose 1.4% to 40,563.06, while the Nasdaq composite burst 2.3% higher to 17,594.50 as Nvidia and other Big Tech stocks recovered more of their stumbles from the past month. Treasury yields also leaped in the bond market following the encouraging economic report. One said U.S. shoppers increased their spending at retailers last month by much more than economists expected, while another said fewer U.S. workers applied for unemployment benefits. A year ago, such reports could have sent the stock market reeling on worries they would push inflation higher. But good news for the economy is once again good news for Wall Street, particularly after a report showed U.S. employers pulled back on their hiring last month by much more than expected. In the bond market, the 10-year Treasury yield clambered up to 3.91% from 3.84% late Wednesday following the strong economic data. The two-year Treasury yield jumped to 4.09% from 3.96% late Wednesday. Traders still widely expect the Federal Reserve to cut its main interest rate at its next meeting in September, which would be the first such cut since the 2020 COVID crash. In energy trading, benchmark U.S. crude lost 81 cents to $77.35 a barrel. Brent crude, the international standard, gave up 56 cents to $80.48 a barrel. The euro cost $1.0983, up from $1.0971. 22-21
