NEW YORK (AP) — Stocks mostly rose in morning trade on Wall Street Thursday, but major indexes remained choppy as more big companies report earnings.
The S&P 500 fell 0.5% at 10:16 a.m. ET. The benchmark had more winners than losers, but a decline in several big tech stocks with outsized valuations more than offset gains elsewhere.
The tech-heavy Nasdaq fell 0.1%. Facebook’s parent company, Meta Platforms, fell 21.7% after reporting a second consecutive quarter of falling revenue amid falling ad sales and fierce competition from TikTok. It joins other technology and communications stocks, such as Google parent Alphabet and Microsoft, reporting weak results and worrying forecasts for advertising demand.
The Dow Jones Industrial Average rose 485 points, or 1.5%, to 32,326. Construction equipment maker Caterpillar rose 9% and was a major contributor to the index’s gains after coming in well above forecasts. earnings from analysts in the third quarter.
Long-term Treasury yields fell. The 10-year Treasury yield, which influences mortgage rates, fell to 3.98% from 4.01% on Wednesday evening. The two-year yield fell to 4.38% from 4.42%.
Earnings were the focus of concern on Wall Street this week, but markets received encouraging economic news on Thursday as the government announced that the US economy returned to growth in the last quarter, growing 2. 6%. This marks a turnaround after the economy contracted in the first half of the year.
The economy has been under pressure from stubbornly high inflation and efforts by the Federal Reserve to raise interest rates to cool prices. The central bank is trying to slow economic growth through rate hikes, but the strategy risks going too far and causing a recession.
Rising interest rates have made borrowing more difficult, especially with mortgage rates. Average long-term U.S. mortgage rates topped 7% for the first time in more than two decades this week.
The latest economic data is being watched closely for any signs of slowing or slowing inflation as Wall Street tries to determine if and when the Fed might reverse its interest rate hikes.
The central bank is expected to raise interest rates by another three-quarters of a percentage point at its next meeting in November. But traders grew more confident of a more modest 0.50 percentage point increase in December, according to CME Group.
Joe McDonald and Matt Ott contributed to this report.