NEW YORK (AP) — The U.S. stock market is giving back a bit more of its record-setting rally on Tuesday.
The S&P 500 fell 0.5% and was on track for a third dip after setting its latest all-time high. The Dow Jones Industrial Average was down 397 points, or 0.8%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.6% lower.
That followed mixed movements for stock markets abroad, while oil prices eased in their latest yo-yo move. Falling technology
stocks in Asia dragged South Korea’s Kospi down 3.3%, but Germany’s DAX returned 1% for two of the world’s bigger moves.
Tech stocks are slowing following huge runs made because of excitement around artificial-intelligence technology, runs that critics said made them too expensive. Uncertainty is hanging over all kinds of markets, from how long the Iran war will keep the Strait of Hormuz closed for oil tankers to whether bond markets worldwide have seen yields climb enough to drag on economies and all kinds of other financial markets.
The wait is on, meanwhile, for Nvidia to report its latest quarterly results. The chip company is due to report on Wednesday, and it’s routinely blown past analysts’ expectations each quarter. Not only that, it’s provided forecasts for future growth that have consistently topped Wall Street’s.
How it does could determine whether technology stocks and the larger U.S. stock market can keep up their rally. Nvidia slipped 0.7%.
“Every flow has its ebb,” Rex Feng, Venu Krishna and other strategists at Barclays Capital wrote in a report. They said investors have been pumping more money than usual into U.S. stock funds, which helped fuel “the fastest rebound in decades; now the pendulum could swing backwards.”
Akamai Technolgoies dropped 3.9% for one of Wlal Street’s sharper losses after the cybersecurity and cloud computing company said it wants to raise $2.6 billion through a convertible note offering.
Home Depot fell 2.2% after its results for the latest quarter edged past analysts’ expectations. An important measure for retailers, how much revenue grew at stores open more than a year, came in below some analysts’ expectations.
CEO Ted Decker said Home Depot saw similar demand from its customers as it did throughout last year “despite greater consumer uncertainty and housing affordability pressure.”
So far, many big U.S. companies have been reporting stronger-than-expected profits for the latest quarter as their customers keep spending even with high gasoline prices and other challenges weighing on them.
In the bond market, Treasury yields climbed. The yield on the 10-year Treasury rose to 4.66% from 4.61% late Monday and from less than 4% before the war with Iran began.
It rose even as oil prices eased. The price for a barrel of Brent crude fell 0.7% to $111.39.
Oil prices have swung sharply but largely remained above $100 with the unofficial U.S. driving season beginning Monday. Brent’s price was around $70 before the war with Iran began.
The average price for a gallon of gasoline rose again overnight to $4.53, according to the AAA motor club, or about 43% more than it cost last year at this time.
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AP Business Writers Yuri Kageyama and Matt Ott contributed to this report.
