After data showed a cooler jobs market and renewed concerns about the health of regional lenders, stocks were mixed and a Treasuries rally cooled in afternoon trading.
The S&P 500 fell after job and inflation data, while the Nasdaq 100 rose as much as 0.5%, closing in on August highs. Alphabet boosted the tech-heavy benchmark after demonstrating its artificial intelligence tools. Walt Disney stock fell as streaming service subscriber losses increased, while Peloton stock fell following a recall of 2.2 million exercise bikes.
Data showed that initial jobless claims in the United States reached their highest level since October 2021, while producer prices rose 0.2% in April, falling short of economists' expectations for a 0.3% increase. The reports suggest that the Federal Reserve's policy-tightening campaign is finally having an impact on inflation, as the central bank walks a fine line between containing rising prices and tipping the economy into a downturn.
The Dollar rose and Treasury yields fell as safe-haven assets traded higher. The policy-sensitive two-year rate fell to 3.9%, while 30-year bonds continued to rise after a stronger-than-expected auction.