U.S. stocks pulled back on Thursday after a key inflation report showed a faster-than-expected rise in prices and boosted the benchmark 10-year Treasury yield above a key level.
The Dow Jones Industrials inched higher 16.81 points to kick off Thursday at 35,784.87.
The S&P 500 skidded 34 points to 4,586.84
The NASDAQ eked up 13.79 points to 14,504.16. All three major averages have trimmed losses since the market open.
Thursday’s consumer price index report showed a year-over-year rise of 7.5%, hotter than expected and the largest gain since 1982.
Big Tech stocks moved lower after the report, with shares of Apple and Amazon shedding more than 1% and Microsoft dropping 2.3%. E-commerce stock Shopify fell 3%. Higher interest rates tend to put pressure on tech and other growth stocks as they make future earnings less attractive to investors.
Bank stocks, however, moved higher as they are more likely to benefit from higher interest rates. Citigroup and Wells Fargo each added 1% in morning trading.
A solid batch of earnings reports helped to limit the losses for the market on Thursday.
Shares of Dow 30 component Disney jumped nearly 6% after the company reported a quarterly earnings beat and a doubling of revenue from its parks, experiences and consumer products division. Uber gained 4% after reporting a revenue beat and a bounce back from omicron-induced challenges.
Coca-Cola shares were up nearly 1% after the soft drink giant reported earnings and revenue that beat Wall Street estimates.
Expedia, Affirm and Zillow will report earnings after the closing bell.
In other economic news, weekly jobless claims came in at 223,000, slightly below expectations.
Prices for 10-year Treasurys gained a bit of ground, lowering yields to 1.95% from Wednesday’s 1.95%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.60 to $91.26 U.S. a barrel.
Gold prices grabbed a dollar to $1,837.60 U.S. an ounce.