WALL Street stocks finished little changed on Thursday (Dec 19) as Treasury bond yields climbed further in the wake of a Federal Reserve decision that prompted deep selling in the prior session.
US indices bounced early in the day, but the rebound faded as the yield on the 10-year US Treasury note rose above 4.5 per cent. The Fed on Wednesday lowered interest rates but signalled it expects fewer interest rate cuts in 2025.
The Dow Jones Industrial Average rose less than 0.04 per cent to 42,342.24.
The broad-based S&P 500 slipped 0.1 per cent to 5,867.08, while the tech-rich Nasdaq Composite Index also declined 0.1 per cent to 19,372.77.
Thursday’s move in stocks is “kind of a lacklustre recovery effort”, said Briefing.com analyst Patrick O’Hare.
“A lot of good news has been priced into this market,” he said. “And now the market is going to sit back and see if a lot of that good news that’s priced in actually comes to fruition.”
Investors were monitoring Capitol Hill where an intervention by president-elect Donald Trump on a spending bill raised the possibility of a government shutdown.
Among individual companies, Micron Technology sank 16.2 per cent after projecting earnings that lagged estimates. While the chip company benefited from strong demand for artificial intelligence, analysts pointed to a drag from weak demand for personal computers and automobile clients.
But Darden Restaurants, which owns the Olive Garden and other chains, jumped 14.7 per cent after projecting a 1.5 per cent rise in same-restaurant sales for its full fiscal year. AFP
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