NEW YORK (AP) — U.S. stock indexes edged lower Thursday as investors grappled with economic uncertainty and shifting monetary policy. The S&P 500 slipped 0.2%, closing at 5,662.89, while the Dow Jones Industrial Average dipped less than 0.1%, ending at 41,953.32. The Nasdaq Composite fell 0.3% to 17,691.63.
Economic Data and Federal Reserve Outlook
Investors processed solid economic data, including a decline in initial jobless claims and a rise in existing home sales. The Federal Reserve kept interest rates unchanged but signaled concerns about potential stagflation. Economic growth has remained sluggish, and inflationary pressures continue to challenge policymakers.
Sector Performance and Notable Movers
Accenture shares fell 7.3% on concerns about reduced revenue from federal government spending cuts. Berkshire Hathaway hit an all-time high before closing up 0.6%. Nvidia gained 0.9% after announcing plans to manufacture chips domestically. Darden Restaurants rose 5% on mixed earnings results and the launch of a delivery partnership with Uber.
Among Dow components, Goldman Sachs and UnitedHealth Group led the gainers, while IBM, Nike, and Walt Disney underperformed. Energy stocks held steady as oil prices remained stable, while financials saw mixed results amid uncertainty over future rate decisions.
Global Market Reactions
European markets showed little movement, with London’s FTSE 100 Index closing slightly lower. The London Stock Exchange Group outperformed, gaining more than 2% on the day. Meanwhile, Australia’s S&P/ASX 200 had its best session in six weeks, rising more than 1% as investor sentiment improved.
Asian markets were mixed, with China’s Shanghai Composite posting modest gains while Japan’s Nikkei 225 slipped as concerns over interest rate hikes persisted. Global investors remain cautious about potential disruptions to supply chains and trade flows.
Outlook and Investor Sentiment
The market’s recent pullback follows a stretch of rapid gains that outpaced corporate profit growth. Analysts predict short-term volatility as investors weigh slowing economic momentum against hopes for continued corporate earnings strength. Inflation remains a key risk factor, with some strategists warning that prolonged price pressures could lead to a stagflationary environment.
Investor sentiment remains cautious, with many awaiting further signals from policymakers on interest rate adjustments and economic support measures. The broader outlook hinges on whether inflation cools enough to justify rate cuts later this year.
More: Rockland County News
Anna Kim is a media reporter for the Rockland Daily News, covering the business of Rockland County and digital disruption in the entertainment industry. She has been a member of the Company Town team for more than a decade. She previously wrote for the Miami Herald and the Palm Beach Post. A native of Wyoming, she is a graduate of the University of Colorado and Columbia University
