The S&P 500 closed little changed as rising bond yields dampened earnings sentiment

Traders work on the floor during early trading at the New York Stock Exchange on January 31, 2024.

Angela Weiss | AFP |

The S&P 500 ended near flat on Wednesday as interest rate concerns dampened enthusiasm for strong corporate earnings.

this S&P 500 Index closed up just 0.02% at 5,071.63 points, while Dow Jones Industrial Average It fell 42.77 points or 0.11% to 38,460.92 points. Nasdaq Composite Index It closed up 0.1% at 15,712.75 points.

Rising US Treasury yields weigh on stocks. At the highest point of the day, the benchmark 10-Year Treasury Bill Yields exceeded 4.67%, while interest rates 2 year note Break through 4.95%.

“The negative (for stocks) is that the 10-year rate is up 70 basis points so far this year, which is very significant,” said Todd Morgan, founding member and chairman of Bel Air Investment Advisors. If it collapses, within seven days, it could hit 5%, which will be extremely negative for the market in the short term.”

The moves came ahead of the release of key U.S. economic data. First-quarter gross domestic product data will be released Thursday morning, while the core personal consumption price index, the Fed’s gauge of inflation, will be released on Friday.

Investors have become concerned that inflation will not fall as quickly as expected, raising concerns that the Federal Reserve may not cut interest rates.

Tesla After announcing the company’s re-entry into more affordable “electric vehicle models. However, both the giant technology names and retail investors’ favorite lines have missed expectations in recent quarters. Boeing shares started to fall after reporting first-quarter results. The space giant ended the day down 2.9%.

Still, corporate earnings have so far beaten Wall Street expectations. More than 25% of companies in the S&P 500 have reported earnings year to date. According to FactSet data, of these companies, 79% exceeded revenue estimates.

“Overall, these are good signs,” Ayako Yoshioka, senior portfolio manager at Asset Development Group, said of the first-quarter earnings season so far. Reports and perspectives from Microsoft and Google tonight and tomorrow from Meta“