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U.S. stocks slip on easing rate cut expectation

NEW YORK
2024-01-17 06:18

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NEW YORK, Jan. 16 (Xinhua) -- U.S. stocks lost on Tuesday, as higher Treasury bond yields, mixed bank earnings as well as woes with Apple and Boeing dampened sentiment.

The Dow Jones Industrial Average fell by 231.86 points, or 0.62 percent, to 37,361.12. The S&P 500 sank 17.85 points, or 0.37 percent, to 4,765.98. The Nasdaq Composite Index shed 28.41 points, or 0.19 percent, to 14,944.35.

Ten of the 11 primary S&P 500 sectors ended in red, with energy and materials leading the laggards by losing 2.40 percent and 1.19 percent, respectively. Meanwhile, technology bucked the trend by going up 0.39 percent.

Sentiment was dampened by Federal Reserve Governor Christopher Waller's remarks that suggested a cautious approach to cutting interest rates, despite growing confidence in meeting the Fed's 2 percent inflation target, and lead to a rise in U.S. Treasury yields.

The Federal Open Market Committee (FOMC) has around 70 percent probability to cut the benchmark interest rate by 25 basis points at its March meeting, down from 81 percent last Friday, data from the CME FedWatch Tool showed Tuesday afternoon.

Morgan Stanley's stock fell to a more than one-month low after reporting lower quarterly profits. In contrast, Goldman Sachs' stock remained relatively flat throughout the session following its announcement of a 51 percent increase in profit.

Boeing experienced a decline to its lowest point in two months following the Federal Aviation Administration's decision to indefinitely prolong the grounding of its 737 MAX 9 airplanes. Additionally, Wells Fargo altered its rating on Boeing's stock, shifting it from "overweight" to "equal weight."

Spirit Airlines' stock slumped after a federal judge halted JetBlue Airways' planned 3.8 billion U.S. dollars acquisition of the low-cost carrier. The judge agreed with the U.S. Department of Justice that the deal could harm consumers.

Apple's shares dropped after the company offered rare discounts on its iPhones in China, a move to combat strong competition. This came days after Microsoft overtook Apple as the world's most valuable firm.
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