New York, July 28 (BNA): Stocks fell Thursday, taking some air out of Wall Street’s big recent rally, despite fatter-than-expected profit reports from big companies and the latest signals of a resilient economy.
The S&P 500 sank 29.34, or 0.6%, to 4,537.41 after touching its highest level in nearly 16 months during the morning, reports AP.
The Dow Jones Industrial Average also flipped from an early gain to a loss and dropped 237.40, or 0.7%, to 35,282.72. The Nasdaq composite fell 77.17, or 0.5%, at 14,050.11.
The dip for Wall Street put a halt to a torrid run where the Dow climbed for 13 straight days. It was up as many as 125 points Thursday morning and seemed to be on the verge of tying a win-streak record set in 1897, before it ran out of momentum.
Stocks have been roaring on hopes the Federal Reserve can pull off what earlier seemed like a long-shot bet: successfully pull down high inflation by raising interest rates without sending the economy into a painful recession.
The Federal Reserve on Wednesday raised its federal funds rate to its highest level in more than two decades in hopes of dragging inflation lower. High rates work by bluntly slowing the entire economy and hurting prices for stocks and other investments.
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