Trending
NEW YORK (AP) -- Stocks were mixed Tuesday as Wall Street regains some stability at the tail end of what's been a turmoil-filled month.
The S&P 500 dipped 6.26 points, or 0.2%, to 3,971.27, though the majority of stocks within the index rose. The Dow Jones Industrial Average slipped 37.83, or 0.1,%, to 3,394.25, and the Nasdaq composite fell 52.76, or 0.4%, to 11,716.08.
There was relative calm even in the bond market, which has been home to some of Wall Street's wildest moves since fears flared about the banking system earlier this month. Yields were rising only modestly following their historic-sized moves in prior weeks.
This month has been dominated by worries that banks around the world may be cracking under the pressure of much higher interest rates. But some calm has returned to the market recently after regulators made big moves to protect the system.
That has much of Wall Street's attention back on interest rates and what central banks will do next with them. The Federal Reserve and other central banks have a tough decision: Inflation is still high, which would typically call for even higher interest rates. But the weakness for banks has shown some fragility in the system that higher rates could worsen.
"I think the global central banks have put us in that middling zone, where we're waiting for clarity on: Are they done?" said Rob Haworth, senior investment strategist at U.S. Bank Wealth Management.
After the Fed hiked its key overnight rate all the way to a range of 4.75% to 5%, up from virtually zero early last year, the market could find some relief if the Fed does take a pause after hiking one more time as it's hinted, Haworth said.
"That's a dramatic change" in rates over just a year, he said. "Just getting to some form of stability provides some clarity for planning to begin."
Traders built bets Tuesday to say the Fed will raise rates at its next meeting in May, though the slight majority is still calling for it to hold rates steady.
Higher rates try to slow inflation by hitting the entire economy with a blunt hammer. They also drag on prices for stocks along the way, particularly technology and other high-growth stocks.
Apple, Microsoft and other Big Tech stocks were among the heaviest weights on the S&P 500 Tuesday after dipping modestly.
On the winning side was McCormick & Co., which jumped 9.6% after the spices and seasonings company reported stronger profit and revenue for its latest quarter than analysts expected.
The harshest focus has been on smaller and midsized banks in the hunt for who could be next to suffer an exodus of customer akin to the run that toppled Silicon Valley Bank.
One of the broader worries has been that all the furor for banks could lead to a pullback in lending to businesses across the country. That in turn could lead to less economic growth and a higher risk of a recession.