Stocks Slip as Strong Economy Delays Interest Rate Cuts

The stock market experienced a slight decline as evidence of a strong economy emerged, potentially delaying the anticipated interest rate cuts desired by Wall Street. On Monday, the S&P 500 dropped 0.3 percent from its record high, while the Dow Jones Industrial Average and the Nasdaq composite fell 0.7 percent and 0.2 percent, respectively. McDonald’s also contributed to the decline after reporting weaker than expected revenue.

Bond Market Reacts

The bond market witnessed significant activity, with yields rising following statements from the chair of the Federal Reserve indicating that interest rate cuts are unlikely to occur in March. Additionally, a robust report on U.S. services businesses further pushed yields higher.

Market Performance

On Monday:

• The S&P 500 decreased by 15.80 points, or 0.3 percent, closing at 4,942.81.
• The Dow Jones Industrial Average fell by 274.30 points, or 0.7 percent, ending at 38,380.12.
• The Nasdaq composite slipped by 31.28 points, or 0.2 percent, to reach 15,597.68.
• The Russell 2000 index of smaller companies experienced a decline of 25.49 points, or 1.3 percent, closing at 1,937.24.

Year-to-Date Performance

Year-to-date performance:

• The S&P 500 has increased by 172.98 points, or 3.6 percent.
• The Dow has risen by 690.58 points, or 1.8 percent.
• The Nasdaq has gained 586.33 points, or 3.9 percent.
• The Russell 2000 has declined by 89.83 points, or 4.4 percent.

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