Business

Stock market today: Wall Street drifts towards a mixed close but still breaks some records

NEW YORK (AP) Stocks drifted to a mostly mixed close on Wall Street, but the S&P 500 and Nasdaq composite index still managed to hit new record highs. A big gain at Apple helped push both indexes higher on Tuesday. The S&P 500 added 0.3%, largely on gains in technology stocks, although more stocks fell than rose within the index. The Nasdaq rose 0.9%. The Dow Jones Industrial Average slipped 0.3%. The Federal Reserve announces its latest interest rate decision Wednesday and is largely expected to leave rates where they are. Apple jumped 7.3% after highlighting its progress in the field of artificial intelligence.

THIS IS A LATEST UPDATE. AP's earlier story follows below.

NEW YORK (AP) Stocks are wobbling on Wall Street Tuesday ahead of several key inflation reports this week and the Federal Reserve's latest policy decision on interest rates.

The S&P 500 rose 0.1% in afternoon trading after falling 0.6% earlier in the day. About 65% of the benchmark index stocks lost ground. The Dow Jones Industrial Average fell 131 points, or 0.3%, while the Nasdaq composite rose 0.6% as of 3:11 p.m. Eastern time. The choppy trading follows another record day for the S&P 500 and Nasdaq.

There was little economic or corporate news for investors to review. General Motors rose 1.7% after the automaker announced its board approved a $6 billion stock buyback.

Calavo Growers jumped 8.2% after the avocado growers' latest quarterly report beat analysts' forecasts.

Stocks stumble to start the day. More from AP business correspondent Seth Sutel.

Banks were among the largest weights in the market. Fifth Third Bancorp fell 0.5% after cutting its revenue growth forecast. JPMorgan was down 2.5% and Citigroup was down 3.3%.

Apple rose 6.4%, helping to offset losses elsewhere in the tech sector. The company is gaining ground after highlighting its advancement in artificial intelligence technology. Affirm Holdings soared 8.1% following the announcement that the buy now, pay later company will be integrated with Apple Pay.

Treasury yields fell in the bond market. The 10-year Treasury yield fell to 4.40% from 4.47% Monday evening.

The key events for the market this week will take place on Wednesday, when the United States releases its latest consumer and inflation inflation update. Federal Reserve announces its latest interest rate update. The United States will also release its latest wholesale price update on Thursday.

Wall Street expects the government's consumer price index to remain unchanged at 3.4% in May. Inflation as measured by the CPI is down sharply from its peak of 9.1% in 2022, but it appears to be stagnating around 3%. This has complicated the federal government's goal of bringing inflation back to its 2% target rate.

The Fed has kept its main interest rate at its highest level in more than two decades and Wall Street is currently hoping for one or two rate cuts this year. Virtually no one expects the Fed to change its main interest rate at its current meeting, which began Tuesday. Policymakers will release their latest forecasts on Wednesday on the direction they see interest rates and the economy going.

When Fed officials released their latest projections in March, they indicated that the typical member expected about three interest rate cuts in 2024. That forecast will almost certainly come true this time around.

The Fed has a dentist mentality that believes immediate pain will spare you long-term suffering, said Bryce Doty, senior portfolio manager at Sit Investment Associates. They don't realize how high interest rates drive up costs for businesses that are passed on to the consumer.

Economic data has been mixed recently, and traders are hoping for a slowdown that doesn't lead to a recession and is of ideal magnitude. A slowdown would put less upward pressure on inflation, which could encourage the Fed to cut rates. A decline in interest rates could further fuel growth in the stock market as a whole. Major indexes, however, hit record highs, despite concerns about persistent inflation and high interest rates.

The economy has remained resilient thanks to support from a strong jobs market and consumer spending. Consumers are increasingly stressed, particularly those on lower incomes, and retailers have warned investors about the potential impact on profits and revenues. The U.S. labor market is showing some signs of slowing, which could dampen inflation but put more pressure on consumers.

Stocks in Europe fell and stocks in Asia were mixed.