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The Nasdaq Composite fell on Thursday, as losses in technology and financials stocks led.
The technology-heavy index fell 0.4%. The S&P 500 fell 0.2% and the Dow Jones Industrial Average rose 90 points, or 0.3%, to 32,752.
Markets have come under pressure recently as investors speculate on the prospect of longer interest rate hikes. Economic data show that despite the increase in the Federal Reserve last year, inflation remained high. Data on Thursday showed weekly jobless claims, a proxy for layoffs, came in below expectations, signaling continued tightness in the labor market.
The strong data, combined with some dovish comments from federal officials, led some investors and analysts to expect the central bank to continue to tighten monetary policy more than previously expected.
Bonds retreated again on Thursday, with the yield on the 10-year US Treasury note rising to 4.067% from 3.994% on Wednesday. The 10-year yield, which covers everything from student debt to mortgage rates, hit its highest close since November on Wednesday.
“The market has been expecting slightly higher rates for a longer period of time and that has pushed bond yields higher and stocks have held back,” said Des Lawrence, senior investment strategist at State Street Global Advisors.
Growth stocks, which are sensitive to rising interest rates, were among the biggest decliners in the market on Thursday.
Tesla shares fell 6% after CEO Elon Musk and his colleagues outlined their vision for the electric car maker.
Advanced Micro Devices slipped 1.5%.
Salesforce bucked the trend, rising 13 percent after the software provider said it expects better-than-expected profit margins and revenue.
Financial stocks also came under pressure. The KBW Nasdaq Bank Lenders Index fell 2.2 percent.
U.S. stocks were mixed in 2023, with the Dow Jones Industrial Average down 1.5% through Wednesday’s close, while the Nasdaq Composite rose 8.7%.
Photo:
William Volkow / Zuma Press
In the commodity market, the price of Brent crude increased. Global crude rose 0.5% to $84.70 a barrel as investors weighed a rise in U.S. output on the prospect that China’s reopening could boost demand.
In Europe, indices rose after data showed that inflation in the Eurozone had eased. The pan-continental Stoxx Europe 600 rose 0.3%.
Hong Kong’s Hang Seng index was down 0.9%, while Japan’s Nikkei 225 and Shanghai Composite were both down 0.1%.
-Akane Otani contributed to this article.
Write to Will Horner at william.horner@wsj.com
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