S&P 500 has the longest sequence of defeats for more than a month while Wall Street has stumbled in the third consecutive defeat

The S&P 500 fell by 0.5% and marked its longest defeats in more than a month. The industrial average of Dow Jones dropped by 173 points, or 0.4%, and the composite Nasdaq flowed 0.5%. However, the three clues are still close to their files at the start of the week.

Actions estimated that the pressure of relations showing that the American economy could be stronger than economists thought. Although this encourages news for workers and people looking for jobs, this could make the federal reserve less likely to reduce interest rates several times in the coming months.

The Fed has just delivered its first cup of the year last week, and the officials went to pencil more until the end of next year. It was essential for Wall Street after American actions have shown in records since April largely due to the expectations of rate reductions. Easier rates can stimulate the economy and make investors more ready to pay high prices for stocks and other investments.

But a stronger economy than expected could eliminate part of the Fed emergency, especially because rate reductions include the risk of inflation aggravation which is already stubbornly. If the Fed does not reduce rates as often as investors await it, this would make it possible to criticize that the US stock market is too expensive after having increased so quickly.

“Budle Up,” warned Jonathan Krinsky, chief technician of the BTIG financial services company.

Actions seem to be in their most vulnerable position from their April stockings given the creation of complacency and how rubber has recently been “as stretched as in certain parts of the market,” Krinsky wrote in a research report.

Wall Street’s ultimate hope is that the American economy remains in a delicate balance where it is slow enough to convince the Fed to reduce rates but does not become as low as it leads to a recession.

Treasury yields have checked above the bond market while traders have made betting for the number of discounts to come to rates by the Fed. The yield on the 10 -year treasure increased to 4.17% against 4.16% Wednesday evening.

One of the strongest economic reports on Thursday than expected said that fewer American workers have filed unemployment benefits last week. This could be a signal that the pace of layoffs slows down.

Another report indicates that the US economy developed at a faster rate in the spring than what did not think about it previously, while a third party said that orders exploded economists last month for American manufactured products with a relatively long lifespan.

In Wall Street, Carmax dropped by 20.1% after the second -hand seller reported a lower profit for the last quarter that analysts did not provide for it. He sold fewer vehicles during the quarter than he had done a year earlier. He was also injured because he increased his expectations in loss of loans granted in previous years.

The jabil dropped by 6.7% even if he declared a stronger benefit for the last quarter that analysts did not provide for it, thanks in part to demand due to artificial intelligence. He also gave forecasts for future income and profits that have exceeded analysts’ expectations.

These movements generally send a higher price of actions, but Jabil has entered the day with an already huge gain of 56.6% for the year so far. It was more than quadruple the increase in S&P 500 in the same time.

Another AI winner, Oracle, returned 5.6%. Earlier this month, he has reached his best day since 1992 after announcing several major contracts signed because of the AI.

Starbucks slipped 0.5% after the coffee chain announced a plan of $ 1 billion to restructure, including the store closure and the reduction of 900 jobs without detail.

On the winning side of Wall Street was IBM. It increased by 5.2% after HSBC announced a promising trial with IBM of quantum computer science in the hope of improving bond trading. The bank said it has made an improvement up to 34% to predict the probability that a trade would be completed at a listed price.

Companies run to develop quantum IT in order to solve complex problems beyond the reach of conventional computers.

KB Home switched between gains and losses after the house manufacturer brought back a stronger profit for the last quarter that analysts did not provide for it. The CEO, Jeffrey Mezger, said he was encouraged to see mortgage rates facilitate the quarter, which could encourage more potential customers to buy houses.

Mortgage rates have sank into expectations for upcoming reductions at rates by the Fed. The KB Home stock ended the day with a drop of 0.6%.

All in all, the S&P 500 fell from 33.25 points to 6,604.72. The industrial average of Dow Jones fell from 173.96 to 45,947,32, and the composite Nasdaq flowed 113.16 to 22,384.70.

In the stock markets abroad, the indices plunged in Europe following modest movements through a large part of Asia.

___

Writers AP Matt Ott and Teresa Cerojano contributed.

Global Forum fortune returns on October 26 to 27, 2025 in Riyadh. CEOs and world leaders will meet for a dynamic event only invitation that shapes the future of business. Request an invitation.