Wall
Street stocks dipped in morning trading Wednesday after four consecutive days
of gains.
The S&P 500 slipped 0.3% as of 10:25 a.m. Eastern
Time Zone. The Dow Jones Industrial Average fell 55 points or 0.2% to 35,235
and the Nasdaq dropped 0.1%.
Markets have been rising this week due to signs of
progress between Russia and Ukraine seemed to show progress and encouraging
data on consumer confidence.
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The US economy will grow at an annual rate of 6.9% from
October to December, said the Commerce Department. That was slower than
previous forecasts and below economists’ expectations.
Technology stocks were among the biggest gainers in the
broader market. Several companies in the sector have expensive values that tend
to push the broader market in either direction. Chipmaker Nvidia slid 1%.
Retailers also slipped and pulled down the market. Home Depot fell 1.6%.
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Oil prices gained ground after being volatile since
Russia invaded Ukraine in February. US benchmark crude oil rose 3.9% and Brent
crude, the international benchmark, went up 3.8%.
Energy stocks also surged along with rising oil prices.
Phillips 66 surged 2.9%.
Markets in Europe were lower while Asian bourses gained.
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Bond yields fell and the yield on the 10-year Treasury
note slipped to 2.37% from 2.40% late Tuesday.
Bond yields have been mostly rising this year as the
market prepares for the Federal Reserve rate hike. The central banks around the
world are raising interest rates to help curb persistently rising inflation.
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Additionally, Wall Street is closely watching the bond
market for clues about the direction of the economy. The 10-year Treasury yield
briefly fell below the 2-year Treasury’s yield on Tuesday, a phenomenon Wall
Street refers to as an “inversion” of the Treasury yield curve. This
is important to investors since prolonged yield inversions have accurately
predicted US recessions in the past. The 2-year Treasury yield slipped to 2.33%
from 2.35% late Tuesday.
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This week, investors will receive several economic
updates. On Thursday, the Commerce Department will release its personal income
and spending report for February and the Labor Department on Friday will
release its employment report for March.