U.S. stocks churned lower 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 faded 67.58 points early Thursday afternoon to at 35,700.48.
The S&P 500 fell 14.79 points to 4,572.39
The NASDAQ sagged 30.34 points to 14,460.04.
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 were modestly lower, with Microsoft falling more than 1%. E-commerce stock Shopify also fell more than 1%, while Adobe dropped 3%. Higher interest rates tend to put pressure on tech and other growth stocks as they make future earnings less attractive to investors.
The rise in interest rates appeared to boost bank stocks, with JPMorgan and Wells Fargo gaining more than 1%. Higher interest rates can make it easier for banks to earn profits in some parts of their business.
Shares of Dow 30 component Disney jumped 4% after the company reported a quarterly earnings beat and a doubling of revenue from its parks, experiences and consumer products division.
Coca-Cola shares were up 1.8% 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 flopped, raising yields to 2.02% from Wednesday’s 1.95%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.53 to $91.19 U.S. a barrel.
Gold prices gained $3.20 to $1,839.80 U.S. an ounce.