The S&P 500 lost 3.23 points, or less than 0.1%, to 4,151.94. The technology-focused Nasdaq Composite added 52.42 points, or 0.4%, to 12,720.58. The Dow Jones Industrial Average lost 85.68 points, or 0.3%, to 32,726.82.
Government bond yields fell, extending a period of volatility, as investors weighed high inflation and rising interest rates against a worsening outlook for the economy. The yield on 10-year Treasury bonds fell to 2.674% on Thursday from 2.747% on Wednesday, a decline that accelerated after the Bank of England forecast a prolonged recession in the UK.
Shares of Coinbase Global jumped $8.09, or 10%, to $88.90 after the cryptocurrency exchange announced a partnership with money manager BlackRock . Lucid Group fell $2, or 9.7%, to $18.56 after the electric vehicle maker cut its forecast for auto production. Clorox lost $6.81, or 4.7%, to $137.76 after the cleaning products maker reported flat revenue for the latest quarter.
Eli Lilly lost $8.04, or 2.6%, to $305.79 after the drugmaker reported a drop in second-quarter revenue. New York-listed Alibaba shares rose $1.71, or 1.8%, to $97.43 after the Chinese e-commerce company posted results.
Stocks have rallied in recent weeks, pushing the S&P 500 up 13% from its mid-June low. Broadly positive earnings reports, combined with signs that some drivers of the inflationary surge are easing, fueled a partial recovery in stocks after a difficult first six months of the year.
Some investors say volatility is likely to return, especially if a slowing economy begins to weigh on the outlook for corporate earnings later in the year. Some financial managers also say markets have been too impatient in predicting that the Fed will hold off on raising interest rates and then cut them next year.
Investors appear to be reasoning that slowing economic growth will keep the Fed from raising interest rates, which would boost the price of stocks and bonds.
The Bank of England raised its key interest rate by half a percentage point on Thursday, the biggest single step in more than a quarter of a century. The central bank’s move follows the Federal Reserve in prioritizing the fight against inflation over the risk of hurting growth.
On the economic front, traders will be able to analyze the jobs data for July on Friday. Economists expect the Labor Department to report 258,000 jobs added.
On Thursday, the Labor Department said the number of people applying for jobless benefits rose to 260,000 at the end of July, up 6,000 from the previous week. New filings fell to 166,000 at the end of March, but increased as the economy slowed.
Mortgage rates fell to their lowest level since April. The average interest rate on a 30-year fixed-rate mortgage was 4.99% this week, down from 5.30% a week earlier.
The Stoxx Europe 600 rose 0.2%, led by shares of retailers and travel and auto companies.
In Asia, the Shanghai Composite rose 0.8%, recovering some losses caused by tensions over Taiwan. Hong Kong’s Hang Seng Index rose 2.1%.
Dealer Anatoliy Pavlov