NEW YORK (AP) 鈥� An early rebound for U.S. stocks petered out by the end of the day, leaving indexes close to flat. The S&P 500 edged down by 0.1% Thursday, coming off one of its worst days of the year after the Federal Reserve said it may deliver fewer cuts to interest rates in 2025 than earlier thought. The Dow Jones Industrial Average inched up by less than 0.1%, and the Nasdaq composite slipped 0.1%. Treasury yields were mixed in the bond market following reports showing the U.S. economy may be stronger than expected, but manufacturing may be contracting again.
THIS IS A BREAKING NEWS UPDATE. AP鈥檚 earlier story follows below.
NEW YORK (AP) 鈥� U.S. stocks are stabilizing Thursday following .
The S&P 500 rose 0.2% in late trading, a day after tumbling 2.9% when the Federal Reserve said it next year than earlier thought. The Dow Jones Industrial Average was up 136 points, or 0.3%, with less than an hour remaining in trading, following Wednesday鈥檚 drop of more than 1,100 points. The Nasdaq composite rose 0.3%.
Wednesday鈥檚 drop took some of the enthusiasm out of the market, which critics had already been warning was and would need everything to go correctly for it to justify its high prices. But indexes remain near , and the S&P 500 is still on track for one of its .
Traders are now expecting the Federal Reserve to deliver just one or maybe two cuts to interest rates next year, according to data from CME Group. Some are even betting on none. A month ago, the majority saw at least two cuts in 2025 as a safe bet.
Wall Street loves lower interest rates because they give the economy a boost and goose prices for investments, but they can also provide fuel for inflation.
Darden Restaurants, the company behind Olive Garden and other chains, helped lift the market after leaping 15.1%. It delivered profit for the latest quarter that edged past analysts鈥� expectations. The operator of LongHorn Steakhouses also gave a forecast for revenue for this fiscal year that topped analysts鈥�.
Accenture rose 6.7% after the professional services company likewise topped expectations for profit in the latest quarter. CEO Julie Sweet said it saw growth around the world, and the company raised its forecast for revenue this fiscal year.
Amazon shares added 1.8%, even as workers at seven of its facilities in the middle of the online retail giant鈥檚 busiest time of the year. Amazon says it doesn鈥檛 expect an impact on its operations during what the workers鈥� union calls the largest strike against the company in U.S. history.
They helped offset a tumble for Micron Technology, which fell 16.7% despite reporting stronger profit than expected. The computer memory company鈥檚 revenue fell short of Wall Street鈥檚 forecasts, and CEO Sanjay Mehrotra said it expects demand from consumers to remain weaker in the near term. It gave a forecast for revenue in the current quarter that fell well short of what analysts were thinking.
Lamb Weston, which makes French fries and other potato products, dropped 22.6% after for profit and revenue in the latest quarter. It also cut its financial targets for the fiscal year, saying demand for frozen potatoes is continuing to soften, particularly outside North America. The company replaced its chief executive.
In the bond market, yields were mixed a day after shooting higher on expectations that the Fed would deliver fewer cuts to rates in 2025. Reports on the U.S. economy came in mixed.
One showed the overall during the summer, faster than earlier thought. The economy has remained remarkably resilient even though the Fed held its main interest rate at a two-decade high for a while before beginning to cut them in September.
A separate report showed last week, an indication that the job market also remains solid. But a third report said manufacturing in the mid-Atlantic region is unexpectedly contracting again despite economists鈥� expectations for growth.
The yield on the 10-year Treasury rose to 4.57% from 4.52% late Wednesday and from less than 4.20% earlier this month.
But the two-year yield, which more closely tracks expectations for action by the Fed in the near term, eased back to 4.31% from 4.35%.
The rise in longer-term yields has put pressure on the housing market by keeping higher. Homebuilder Lennar fell 4.8% after it reported weaker profit and revenue for the latest quarter than analysts expected.
CEO Stuart Miller said that 鈥渢he housing market that appeared to be improving as the Fed cut short-term interest rates, proved to be far more challenging as mortgage rates rose鈥� through the quarter.
鈥淓ven while demand remained strong, and the chronic supply shortage continued to drive the market, our results were driven by affordability limitations from higher interest rates,鈥� he said.
A report on Thursday may have offered some encouragement for the housing industry. It showed a
In stock markets abroad, London鈥檚 FTSE 100 fell 1.1% after the Bank of England paused its cuts to rates and on Thursday. The move comes as inflation there moved further above the central bank鈥檚 2% target rate, while the British economy is flatlining at best.
The Bank of Japan also kept its benchmark interest rate unchanged, and Tokyo鈥檚 Nikkei 225 fell 0.7%. Indexes likewise sank across much of the rest of Asia and Europe.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
Stan Choe, The Associated Press
