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Thursday’s stock rally lost steam in the afternoon, with the S&P 500 closing in the red for a fifth day.
It is the index’s longest losing streak since October.
Technology stocks struggled again and bond yields climbed. The 2-year Treasury yield marked a 3 p.m. ET close of 4.988% after briefly crossing 5%.
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For the fourth time this week, the S&P 500 opened higher but couldn’t hold on through the close.
The S&P 500 fell 0.2%, its fifth-straight session of declines. The Dow Jones Industrial Average was up about 25 points, or 0.1%. The Nasdaq Composite was down 0.5%.
It is the S&P 500’s longest losing streak since Oct. 23, though it’s only down about 4.6% from its March 28 record close.
Technology stocks struggled again on Thursday as bond yields climbed.
The 2-year Treasury yield marked a 3 p.m. ET close of 4.988% after briefly crossing 5%. It is the highest the 2-year yield has been at 3 p.m. since Nov. 13, according to Dow Jones Market Data. The yield on the 10-year rose to 4.646%.
The latest economic data and earnings reports failed to boost stocks, while comments from Federal Reserve officials were hawkish.
“High interest rates also put pressure on high P/E multiples through discount rate models, resulting in little tolerance for disappointments of sales and profit growth,” writes Navellier & Associates founder Louis Navellier. “We’ve seen several examples this earnings season of companies printing beats on estimates only to watch their shares trade down.”
There hasn’t been much about artificial intelligence hype in recent weeks. That could change as big technology firms report results. Tesla, Meta Platforms, Alphabet, and Microsoft all report next week.
Apple is looking to a crop of enterprise customers, including retailer Lowe’s and software maker SAP, to showcase the Vision Pro’s usefulness to corporate buyers, and justify its $3,500 price.
Though adoption by a wide business audience remains tricky.
Cisco built an app for the “mixed-reality” headset, but says it only selectively handed out a small number of headsets inside the company.
“It’s not like every desk at Cisco has a Vision Pro,” said Jeetu Patel, general manager of Cisco’s security and collaboration products.