U.S stocks turned weaker Wednesday, erasing some recent gains in the absence of any major new catalyst to keep driving share prices higher.
Blue-chip stocks endured the brunt of the selling pressure, with the Dow Jones Industrial Average falling 0.7%, or roughly 293 points, to snap a four-day winning streak. The S&P 500 slipped 0.2%, while the tech-heavy Nasdaq Composite ticked up less than 0.1%.
Both the Dow and the S&P 500 had closed at record highs on Tuesday, riding some lingering momentum from the Federal Reserve’s half-a-percentage point cut to short-term interest rates last week.
Stocks also got a boost Tuesday after China’s central bank announced a raft of stimulus measures aimed at supporting the country’s weakening economy.
No such help arrived Wednesday, however. The day was light on economic data and corporate earnings reports, and a slightly better-than-expected reading on new home sales did little to move markets.
Weighing on the Dow, Amgen shares fell 5.5% after analysts were underwhelmed by the results of a late-stage study of a drug that would treat a type of eczema. Visa dropped another 1.2% after sliding 5.5% Tuesday, when the Justice Department said it was suing the company for antitrust violations.
Economic data could play a bigger role in driving markets over the remainder of the week.
Data on weekly unemployment claims and durable goods orders will be released Thursday. On Friday, the Commerce Department will release closely-watched data on personal income and spending trends, as well as the Fed’s preferred inflation gauge.
Treasury yields extended recent gains, with the yield on the 10-year note rising to 3.781% from 3.736% Tuesday, according to Tradeweb. Yields on longer-term Treasurys have climbed since the Fed cut rates last week, reflecting bets by investors that the U.S. economy can avoid a recession.
Commodity prices slipped after rising Tuesday in response to China’s stimulus measures. U.S. crude fell 2.6% to $69.69 a barrel, while copper prices edged down less than 0.1%.
Global markets were mixed. The Stoxx Europe 600 fell 0.1%, the Nikkei 225 dropped 0.2%, while the Shanghai Composite finished up 1.2%.
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