NEW YORK (AP) — Wall Street is slipping in early trading and giving back some of its big gain from the day before. The S&P 500 was 0.6% lower Tuesday. The Dow fell 258 points, and the Nasdaq composite lost 0.6%. A day after helping lead the market, tech stocks were back to sinking. Markets have had a slow start to the year after roaring into the end of 2023. The S&P 500 had leaped to nine straight winning weeks to close out the year, mostly on rising hope that the U.S. economy will remain resilient and the Federal Reserve will cut interest rates sharply.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Wall Street pointed lower before the opening bell Tuesday, one day after markets rebounded on easing bond yields.
Futures for the S&P 500 and Dow Jones Industrial Average are both down 0.4%.
Shares of Boeing stabilized in off-hours trading after taking a big hit Monday, the first day of trading since a Boeing-made Alaska Air plane suffered an in-flight blowout late Friday over Oregon. Shares were down less than 1% after tumbling more than 8% on Tuesday.
Match Group soared more than 15% early after The Wall Street Journal reported that activist investor Elliott Management has built a $1 billion stake in the owner of Tinder and hopes to help the company to boost its slumping stock.
The Journal also reported Tuesday that Hewlett Packard Enterprise was in talks to buy Juniper Networks for $13 billion. HPE shares tumbled more than 10% before the bell.
Earnings results are starting to trickle in, with Delta Air Lines, JPMorgan Chase and UnitedHealth Group to be among the companies kicking off the S&P 500’s reporting season Friday for the final three months of 2023.
Growth in corporate profits could help prop up stock prices.
Before the earnings season kicks off, Wall Street will be focused on Thursday’s release of the latest inflation data for U.S. consumers. A costs cooldown has ignited hope that the Federal Reserve will soon see enough improvement to not only halt interest rate hikes, but to begin cutting them.
The Fed has already hiked its main interest rate to the highest level since 2001, which grinds down on the economy and hurts prices for investments, in hopes of conquering high inflation.
In Tokyo, the Nikkei 225 rose 1.2% to 33,763.18, climbing to its highest level since March 1990 on gains in technology companies. Telecoms and high-tech company SoftBank gained 2.7% and electronics maker Omron jumped 6.2%.
Hong Kong's Hang Seng slipped 0.2% to 16,190.02, regaining some ground lost in recent declines. The Shanghai Composite index rose 0.2% to 2,893.25.
South Korea's Kospi shed 0.3% to 2,561.24, while the S&P/ASX 200 in Australia jumped 0.9% to 7,520.50.
In Europe at midday, Germany’s DAX and the CAC 40 in Paris each fell 0.3%. Britain’s FTSE 100 edged 0.1% lower.
U.S. benchmark crude oil jumped $1.81 to $72.58 a barrel in electronic trading on the New York Mercantile Exchange. It lost $2.84 to $70.77 a barrel on Monday and is down 16% over the last three months.
Brent crude oil, the international standard, rose $1.80 to $77.92 a barrel.
The U.S. dollar slipped to 144.10 Japanese yen from 144.23 yen. The euro fell to $1.0940 from $1.0949.
On Monday, Wall Street saw broad gains as easing Treasury yields relaxed pressure on the stock market. The rally was led by Big Tech stocks, the main driver of Wall Street’s big advance last year, when excitement around artificial-intelligence technology made just a handful responsible for most of the S&P 500’s returns. But they stumbled last week as markets broadly regressed.
The S&P 500 jumped 1.4% and is back within 0.7% of its record, regaining momentum after logging its first losing week in the last 10 in a slow start to the new year.
The Nasdaq composite shot 2.2% higher and the Dow Jones Industrial Average lagged the market with a gain of 0.6%.
