BANGKOK – Stocks gave up an early gain and turned lower in the last half-hour of trading Wednesday, leaving major indexes with modest losses. The S&P 500 lost 0.2% and the Dow Jones Industrial Average gave up 0.4%. The tech-heavy Nasdaq held up somewhat better, ending down just 0.1%. Several stocks championed by hordes of online investors made more erratic moves, and several of them including Clover Health ended with sharp losses. Wendy’s sank 12.7% after soaring 25.9% a day earlier. Bond prices rose. The yield on the 10-year Treasury note fell to 1.49% from 1.52% a day earlier.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Major U.S. indexes veered lower on Wall Street in Wednesday afternoon trading as a pullback in banks and industrial companies offset gains elsewhere in the market. Stocks championed by hordes of online retail investors, the “meme” stocks as they have become known, were volatile once again.
The S&P 500 fell 0.1% as of 3:37 p.m. Eastern. The Dow Jones Industrial Average fell 126 points, or 0.4%, to 34,474 and the Nasdaq Composite gave up an early gain, dropping less than 0.1%.
The tech-heavy Nasdaq was lifted by the same Big Tech companies that have pushed that index generally higher for the last 18 months. Microsoft rose 0.5% and Amazon added 0.6%.
Several health care companies made solid gains. Merck rose 2.2% after announcing a supply agreement with the U.S. and Canada for a potential COVID-19 treatment. AbbVie gained 1.4% after announcing a collaboration with Caraway Therapeutics to make treatments for Parkinson’s disease and other neurodegenerative disorders.
Treasury yields slipped. The yield on the 10-year Treasury fell to 1.49% from 1.52% late Tuesday. The falling yields broadly weighed down banks, which rely on higher yields to charge more lucrative interest on loans. JPMorgan slid 1.2% and Citigroup fell 1%.
Investors continue to focus a significant amount of attention on inflation. China’s producer price index, which measures prices of raw goods and services, jumped 9% from a year earlier in May, the fastest increase since 2008 and above analysts’ forecasts. Surging prices for oil and other commodities and manufacturing components such as semiconductors were the main factor behind the jump in producer prices there.
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