US stocks trade mixed as inflation concerns keep traders on edge over higher rates
- US stocks opened mixed as investors speculate on the Fed's moves to tame inflation.
- The S&P 500 and the tech-heavy Nasdaq are on track for their second consecutive losing week.
US stocks were mixed on Thursday as traders continue to mull the prospect of higher interest rates amid signs the economy remains in high gear.
All three major indexes were on track for a losing week, with the S&P 500 and Nasdaq composite heading for the second consecutive weekly loss. The benchmark S&P 500 last week notched its worst performance of the year.
Rates pressed higher Thursday. The 2-year Treasury yield reached levels not seen in over a decade, while the 10-year Treasury yield ticked above 4%.
Higher borrowing costs come as the US central bank continues to battle inflation, with the Federal Reserve expected to raise benchmark rates at least two more times to above 5% and keep them elevated for longer than markets have previously anticipated.
Traders are assessing a slew of economic data, including jobless class, which fell again in the last week and have remained steadily below 200,000 in a sign the labor market is still hot. Markets also digested other data points including unit labor costs and productivity data.
Investors were awaiting comments from Fed Governor Christopher Waller and Minneapolis Fed President Neel Kashkari later in the day.
Here's where US indexes stood shortly after the 9:30 a.m. ET open on Thursday:
- S&P 500:3,932.33, down 0.48%
- Dow Jones Industrial Average: 32,695.04, up 0.1% (33.20 points)
- Nasdaq Composite: 11,287.41, down 0.81%
Here's what else is happening this morning:
Warren Buffett lashed out against critics of stock buybacks, calling them economically "illiterate" in his annual letter. The White House has said it just wants to encourage smart spending.
- Tesla stock fell nearly 8% Thursday after the EV maker disappointed investors with little news at its investor day.
China's imports of seaborne Russian oil are set to hit an all-time high this month.
In commodities, bonds and crypto:
- West Texas Intermediate crude oil fell 0.62% to $78.12 per barrel. Brent crude, oil's international benchmark, rose 0.4% to $84.60 a barrel.
- Gold slipped 0.3% to $1,84o.20 per ounce.
- The yield on the 10-year Treasury rose six basis points to 4.06%.
- Bitcoin fell 0.46% to $23,683, while ether dropped 0.28% to $1,654.