Stock market today: Most of Wall Street slips as Treasury yields rise more

The New York Stock Exchange is seen, through a window guard, on Tuesday, April 16, 2024 in New York. Wall Street drifted toward gains as more corporate earnings come in, giving investors a break from fretting about if and when the Federal Reserve might cut interest rates. (AP Photo/Peter Morgan)

NEW YORK (AP) — Most U.S. stocks are weakening Tuesday, as continued worries about high interest rates compete with strong profit reports from some big companies.

Currency traders work near the screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, April 16, 2024. (AP Photo/Ahn Young-joon)

The S&P 500 was 0.3% lower in morning trading, coming off a sharp loss after bending under the pressure from a jump in Treasury yields. The Dow Jones Industrial Average was up 77 points, or 0.2%, as of 10:45 a.m. Eastern time, and the Nasdaq composite was 0.2% lower.

Currency traders work near the screen showing the Korea Composite Stock Price Index (KOSPI) at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, April 16, 2024. Asian shares skidded Tuesday following a slump on Wall Street after higher yields in the U.S. bond market cranked up pressure on stocks. (AP Photo/Ahn Young-joon)

A 5.3% climb for UnitedHealth helped support the market after the insurer reported stronger results for the first three months of the year than analysts expected. Morgan Stanley was another winner, rising 3.8%, after likewise topping expectations.

But the majority of stocks on Wall Street were falling. Northern Trust slumped 3.1% after the financial services company reported weaker earnings than analysts expected. Johnson & Johnson sank 1.2% despite topping profit forecasts. Its revenue came in a whisper below expectations.

Companies are under even more pressure than usual to report fatter profits and revenue because the other lever that sets stock prices, interest rates, looks unlikely to add much lift soon.

Traders are pushing out forecasts for when the Federal Reserve will begin cutting its main interest rate, which is at the highest level in more than two decades. A string of reports showing inflation and the overall economy remain hotter than forecast is raising worries the Fed will have to keep rates high for much longer than expected to get inflation fully back to its 2% target.

Currency traders work near the screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Tuesday, April 16, 2024. Asian shares skidded Tuesday following a slump on Wall Street after higher yields in the U.S. bond market cranked up pressure on stocks. (AP Photo/Ahn Young-joon)

After jumping Monday on stronger-than-expected data on sales at U.S. retailers last month, Treasury yields rose again following a speech by the vice chair of the Federal Reserve.

Philip Jefferson said his expectation is for inflation to keep easing and for the Fed to hold its main rate “steady at its current level.” That contrasts with what he said in February, when he said “it will likely be appropriate to begin dialing back policy restraint at some point this year” if things went as he expected.

Fed Chair Jerome Powell will also be speaking in the afternoon, and that could send more swings through financial markets as traders trim their forecasts for how many cuts to rates may arrive this year. After coming into 2024 expecting the Fed to cut rates six times or more, according to data from CME Group, traders are now mostly calling for just one or two reductions.

A person looks at an electronic stock board showing Japan’s Nikkei 225 index at a securities firm Tuesday, April 16, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

The yield on the 10-year Treasury climbed to 4.66% from 4.61% late Monday and from 4.52% before the weekend.

The yield on the two-year Treasury, which more closely tracks expectations for Fed action, rose to 4.95% from 4.91% late Monday.

On Wall Street, stocks that tend to swing the most with interest rates were leading the market lower.

The sharpest losses in the S&P 500 hit real-estate investment trusts and utility stocks. They pay relatively high dividends and tend to attract the same kind of investors as bonds do. When bond are paying higher yields, income-seeking investors may camp there instead.

The stock of Donald Trump’s social-media company also slumped again. Trump Media & Technology Group fell another 10.4% to follow up on its 18.3% slide from Monday.

The company said it’s rolling out a service to stream live TV on its Truth Social app, including news networks and “other content that has been cancelled, is at risk of cancellation, or is being suppressed on other platforms and services.”

The stock has dropped below $24 after nearing $80 last month as euphoria fades around the stock and the company made moves to clear the way for some investors to sell shares of the company’s stock.

In stock markets abroad, indexes tumbled across Asia and Europe as they caught up with the drubbing Wall Street took on Monday. Stock indexes fell 2.1% in Hong Kong, 2.3% in Seoul and 1.9% in London.

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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.