Wall Street Trades Near Record as Markets Steady/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stock markets held steady Thursday with the S&P 500 hovering just below its all-time high. Mixed earnings reports from major companies drove slight market shifts as investors anticipated possible interest rate cuts. Dollar General and Hormel posted strong gains, while Kroger and Snowflake saw declines.
Wall Street Market Snapshot Quick Looks
- S&P 500 remains 0.7% below record high
- Dow and Nasdaq dip slightly in morning trading
- Dollar General, Hormel lead stock market gainers
- Kroger, Snowflake fall on mixed earnings reports
- Treasury yields tick upward after labor market reports
- Investors eye potential Fed interest rate cut next week
- AI optimism persists despite concerns of overinvestment
- Global markets mixed; Japan’s Nikkei surges 2.3%
Deep Look:
Wall Street Holds Near Record High as Investors Navigate Mixed Earnings and Rate Expectations
NEW YORK — Wall Street hovered near historic highs Thursday morning, maintaining its calm trajectory amid mixed corporate earnings and growing speculation over an upcoming interest rate decision from the Federal Reserve.
The S&P 500 dipped slightly by 0.1% but remains less than 1% away from its all-time high, continuing a notably stable period for U.S. stocks after recent volatility. As of 10 a.m. Eastern, the Dow Jones Industrial Average was down by 35 points, or 0.1%, while the tech-heavy Nasdaq Composite slipped 0.2%.
Despite the modest movements, investors appear cautiously optimistic, with recent earnings reports from several major companies helping to drive the market’s tone.
Retail and Food Stocks See Mixed Outcomes
Among the top performers, Dollar General surged 8.8% after exceeding analysts’ profit expectations for the latest quarter. The discount retailer benefited from an uptick in customer traffic and improved profit margins, signaling strength in value-based shopping during a time of economic uncertainty.
Hormel Foods also impressed investors, climbing 3.9% on the back of strong performance from its Planters nuts and Jennie-O turkey brands. The company’s full-year profit forecast midpoint came in higher than Wall Street’s expectations, bolstering confidence in its consumer staples segment.
In contrast, grocery giant Kroger dropped 5.8% after reporting quarterly revenue below forecasts. While the company did beat earnings expectations, it lowered the upper limit of its revenue guidance for the year, leaving investors unimpressed.
Tech Sector Mixed as Snowflake Slides
Software company Salesforce offered a mixed bag, with its stock fluctuating between gains and losses before settling up 0.4%. Though the company beat quarterly profit estimates, its revenue slightly missed targets. CEO Marc Benioff expressed confidence in Salesforce’s positioning in the emerging AI-driven tech landscape but acknowledged investor hesitation over long-term returns on artificial intelligence investment.
Meanwhile, cloud data platform Snowflake fell sharply, down 9.7%, despite beating analyst projections for revenue and profit. The steep decline appears tied to tempered expectations after an exceptionally strong previous quarter and a noticeable slowdown in product revenue growth. Analysts at UBS pointed to investor disappointment following a stretch of inflated optimism.
Fed Rate Cut in Focus as Labor Data Surfaces
Market momentum has recently been influenced by investor expectations that the Federal Reserve could cut interest rates as early as next week. The central bank has already implemented two rate cuts this year in an effort to support the labor market and broader economy.
Lower interest rates are generally welcomed by investors because they tend to increase the value of equities and can stimulate economic activity. However, the downside risk is that looser monetary policy can rekindle inflation, which the Fed has tried to keep in check with a target of 2%.
Recent labor market data slightly dented those expectations. New filings for unemployment benefits reached their lowest level in over three years, according to data released Thursday morning. Additionally, a separate report from Challenger, Gray & Christmas revealed that announced layoffs in November dropped by over 50% compared to October.
While positive news for job seekers, these reports may signal that the labor market doesn’t require urgent rate cuts, reducing the Fed’s incentive to ease policy next week.
Bond Market Reacts to Economic Signals
Following the labor reports, the yield on the 10-year U.S. Treasury note rose modestly to 4.08%, up from 4.06% on Wednesday. Rising yields can make bonds more attractive compared to stocks, which in turn can exert downward pressure on equities. Analysts also noted that the increase followed a rise in Japanese government bond yields, part of a broader global trend.
International Markets Mostly Upbeat
Global markets painted a mixed picture. European indexes saw modest gains, supported by optimism around a possible U.S. rate cut. In Asia, Japan’s Nikkei 225 index jumped 2.3% on strong corporate earnings and favorable currency movements, while South Korea’s Kospi edged down 0.2% amid caution over global trade trends.
Investor Sentiment: Cautious but Optimistic
Wall Street’s measured performance comes after weeks of turbulence triggered by inflation data, earnings season, and uncertainty around interest rate policy. While the S&P 500 and other major indexes flirt with all-time highs, investors remain wary of potential surprises — particularly as economic data and central bank decisions continue to shape short-term direction.
Still, analysts say the market’s relative calm reflects a broader sentiment shift toward confidence in the economy’s resilience heading into 2026.
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