Stocks moved lower in early trading Thursday as investors digested the Federal Reserve’s latest assessment of the economy and awaited a handful of noteworthy earnings reports.
The Dow Jones Industrial Average, S&P 500 and tech-heavy Nasdaq Composite were each down 0.3% about 15 minutes after the opening bell. The major indexes have gained ground in three of the past four sessions, as the S&P 500 and Nasdaq look to snap four-week losing streaks that have been fueled by investor concerns about tariffs and the outlook for the economy.
On Wednesday, the Fed—after announcing a widely expected decision to leave its key interest rate unchanged—said that the economy continues to expand at a “solid pace.” Nonetheless, members of the Fed’s policy committee have scaled back their growth forecasts and raised their projections for inflation amid increased “uncertainty around the economic outlook.” While committee members maintained their expectations for two rate cuts in 2025, Chair Jerome Powell said the Fed is in no rush to adjust policy as it seeks clarity on the impact of Trump administration policies.
The yield on the 10-year Treasury note, which has fallen in recent months as concerns about the economy have grown, was at 4.19% this morning, down from 4.26% at yesterday’s close. The yield, which affects borrowing costs on all sorts of loans, notably mortgages, is at its lowest level in more than a week.
Among noteworthy stock movers, Accenture (ACN) shares were down 8% after the professional services firm reported delivered a mixed earnings report amid concerns that the federal government’s drive to cut costs will hurt the company’s business.
Shares of mega-cap technology companies, which helped lead yesterday’s rally, were mostly lower in early trading. Tesla (TSLA), which has lost about half its value since hitting a record high in December, was down 1%, while Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), and Broadcom (AVGO) also lost ground. AI chipmaker Nvidia (NVDA) and Facebook parent Meta Platforms (META) were both up about 1%.
Sporting goods company Nike (NKE), package delivery giant FedEx (FDX) and memory chip maker Micron (MU) are each due to release quarterly earnings reports after the closing bell today. Investors will be closely watching the numbers, as well as comments from executives, for clues about the state of the economy. Shares of Nike and FedEx were slightly lower this morning, while Micron rose 1%.
Gold futures were up slightly at $3,045 an ounce, after touching a new record high this morning, while West Texas Intermediate futures, the U.S. crude oil benchmark, fell 0.3% to $67 per barrel. Bitcoin was at $85,700, near the levels it traded at Wednesday afternoon.
