NEW YORK (AP) — Stocks fell in afternoon trading on Wall Street Thursday, putting major indexes deeper in the red for the week.
The S&P 500 fell 0.9% as of 12:02 p.m. Eastern. The benchmark index is down 3.1% for the week following the biggest pullback for the market in more than two years on Tuesday.
The Dow Jones Industrial Average fell 144 points, or 0.5%, to 30,987 and the Nasdaq fell 1.2%.
Technology stocks were among the biggest weights on the broader market. Adobe slumped 17% after the software maker announced a $20 billion acquisition of a design company and issued a disappointing revenue forecast.
U.S. crude oil prices fell 3.6% and weighed on energy stocks. Hess fell 3%.
Railroad operators were mostly higher after a tentative labor agreement was reached, averting a strike across the country that could have been devastating to the economy. Union Pacific rose 1.8%.
Bond yields rose. The yield on the 10-year Treasury, which helps dictate where mortgages and rates for other loans are heading, rose to 3.46% from 3.40% late Wednesday. The yield on the two-year Treasury rose to 3.88% from 3.79%.
Investors were digesting the latest report on retail sales, which gave a mixed view of how consumers are coping with the hottest inflation in four decades. The government report showed that retail sales rose an unexpected 0.3% in August after falling 0.4% in July. Inflation hurt several areas of spending, though, with business at restaurants still growing, but at a slower pace, while furniture and online sales fell.
Consumer spending has been a strong point in the broader economy, along with employment, as inflation continues to squeeze businesses and consumers. High prices and the Federal Reserve’s aggressive plan to raise interest rates as a solution remains Wall Street’s main focus.
A hotter-than-expected August report on consumer prices Tuesday spooked the market and dashed hopes that the Fed might consider easing its rate hikes. It was followed on Wednesday by a report that wholesale prices are still rising.
Investors worry rate hikes by the Fed could go too far in slowing the U.S. economy and send it into a recession. The central bank has already raised its benchmark interest rate four times this year, with the last two increases by three-quarters of a percentage point. Traders now see a 1-in-5 chance the Fed may hike its benchmark rate by a full percentage point next week, quadruple the usual move, according to the CME Group.