NEW YORK (AP) 鈥� Stocks drifted to a mixed close on Wall Street after central banks around the world showed they鈥檙e not done cranking interest rates higher in their fight against inflation. The S&P 500 rose 0.4% Thursday. Most stocks in the index fell, but gains from some big technology stocks countered losses elsewhere. The Nasdaq rose 1% and the Dow was little changed. The Bank of England hiked its main interest rate by more than expected, while central banks in Norway, Switzerland and Turkey also raised rates. Federal Reserve Chair Jerome Powell said again that rates may go higher in the United States.
THIS IS A BREAKING NEWS UPDATE. AP鈥檚 earlier story follows below.
NEW YORK (AP) 鈥� Stocks are drifting on Wall Street Thursday after central banks around the world showed they're not done cranking interest rates higher in their fight against inflation.
The S&P 500 was 0.2% higher in afternoon trading after wobbling through the day. The majority of stocks in the benchmark index were slipping, but gains from some big technology stocks countered losses elsewhere.
The Dow Jones Industrial Average fell 21 points, or 0.1%, to 33,930, and the Nasdaq was 0.6% higher, as of 2 p.m. Eastern.
The Bank of England by a bigger margin than expected to a 15-year high. Central banks in Norway, Switzerland and Turkey also raised borrowing rates.
In the United States, meanwhile, Federal Reserve Chair and that further increases to rates may be necessary.
The Fed held interest rates steady at its last meeting after raising rates aggressively throughout 2022 and into 2023 to tame painfully high inflation. Inflation has cooled somewhat since last summer, but the Fed has signaled it may raise rates two more times this year as it tries to push inflation down to its stated goal of 2%.
Powell testified before a Senate committee Thursday, a day after appearing before a House of Representatives committee.
Central banks worldwide have been raising interest rates to make borrowing more difficult and slow economic growth in order to stifle inflation. The strategy risks going too far in stalling growth and dragging economies into a recession. Economists and analysts have been warning that the U.S. could slip into a recession before 2023 ends, but resilient consumer spending and a strong jobs market have been bolstering the economy.
High interest rates, though, have already slowed manufacturing and other parts of the U.S. economy. They've also helped cause three high-profile failures in the U.S. banking system. The , even after the federal government acted quickly to provide support.
Bond yields rose. The yield on the 10-year Treasury rose to 3.78% from 3.73% late Wednesday. It and other important loans.
Stock indexes in Europe fell following the most recent rate increases. Britain鈥檚 FTSE 100 slipped 0.8%. The latest interest rate increase from the Bank of England marked its 13th hike in a row in its effort to combat .
France's CAC 40 shed 0.8% and Germany's DAX fell 0.2%.
Markets in Asia were mixed. Hong Kong and Shanghai were closed for the Dragon Boat Festival, a national holiday.
Wall Street has little economic data in the U.S. to look forward to for the remainder of the week. The Labor Department reported Thursday , a possible sign that the Fed's rate hikes are beginning to cool a surprisingly resilient labor market.
In the housing industry, to top economists' expectations for a slide.
The U.S. stock market has been 鈥渢aking a little bit of a breather" following a five-week rally, said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance. The big focus in the coming weeks will likely be any economic data, including a big report on inflation next week, that could give investors a better sense of how the Fed will proceed.
鈥淭he Fed is pretty close to done, if not done already,鈥� he said. 鈥淭he stock market is in a holding pattern waiting to see new economic data and the Fed's reaction.鈥�
Several companies made big moves on a mix of news. Spirit Aerosystems, a major supplier to the world鈥檚 largest aircraft manufacturers, slumped 8.5%. It is suspending operations at a critical Kansas plant after union workers there rejected a proposed four-year contract and authorized a strike.
Office furniture maker Steelcase rose 7% after reporting stronger financial results for the latest quarter than expected.
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Yuri Kageyama and Matt Ott contributed to this report.
Damian J. Troise, The Associated Press
