NEW YORK (AP) 鈥� Stocks drifted higher Monday as momentum slowed on Wall Street following a powerful rally to start the year. The S&P 500 edged up 0.1%, rising to its highest level since April 2022. The Dow rose less than 0.1%. The Nasdaq composite rose 0.2%. Tesla rose after it said the number of vehicles it delivered during the spring surged from a year earlier. Much of the rest of the market was quieter. The U.S. stock market closed at 1:00 p.m. Eastern time and will remain shut Tuesday in observance of Independence Day.
THIS IS A BREAKING NEWS UPDATE. AP鈥檚 earlier story follows below.
NEW YORK (AP) 鈥� Stocks are drifting Monday as momentum slows on Wall Street following its powerful rally to start the year.
The S&P 500 was virtually unchanged in midday trading, hanging close to its highest level since April 2022. The Dow Jones Industrial Average was up 9 points, or less than 0.1%, at 34,416, as of 11:10 a.m. Eastern time, while the Nasdaq composite was basically flat.
in the market, rising 7.4%. The company said over the weekend that the number of vehicles it delivered during the spring surged by 83% from a year earlier. That was more than analysts expected, though cuts to prices may have driven some of the gains. Investors will see how much the discounts hit profits when Tesla reports its earnings on July 19.
Rivian, another electric-vehicle company, jumped 14.3% after it also said its deliveries for the spring topped analysts' expectations.
On the losing end of Wall Street was Apple, which slipped 1% after becoming the first U.S. stock to finish a trading day with a total value of more than $3 trillion.
Much of the rest of the market was relatively quiet following a rally where the S&P 500 climbed in six of the last seven weeks to send the index up nearly 16% for the first half of the year.
Trading in the U.S. stock market will end at 1 p.m. Eastern time and remain closed Tuesday in observance of Independence Day.
The market鈥檚 gains so far this year have come as the U.S. economy has defied many predictions for a recession. The job market in particular has remained solid despite much higher interest rates meant to undercut inflation.
One area of the economy that has faltered is manufacturing, and a report on Monday showed it contracted in June for an eighth straight month. The reading from the Institute for Supply Management was worse than economists expected.
"Manufacturing is stuck in the mud and it looks like more rain is coming," said Brian Jacobsen, chief economist at Annex Wealth Management. "The only solace in the ISM report was that inflationary pressures are absent, but that鈥檚 little comfort when earnings continue to be at risk."
Traders nevertheless hope that strength in other areas of the economy will keep it out of a recession, which would support corporate profits. A report later this week will go a long way toward underscoring or weakening that argument.
On Friday, the U.S. government will report its latest monthly update on hiring across the economy, as well as how much wages are rising for workers. It鈥檚 one of the last big pieces of data left before the Federal Reserve meets next on interest rate policy.
The Fed has already hiked rates by a mammoth 5 percentage points from virtually zero early last year in hopes of getting inflation under control. But it鈥檚 hinted that it may be nearing the end of the increases, which would mean less added pressure on the economy and financial markets. Much of Wall Street expects it to raise rates on July 26.
The hope among traders is that will be the Fed鈥檚 final increase of the cycle. The Fed, meanwhile, has hinted that it could perhaps raise rates twice more this year.
Other than Friday鈥檚 jobs report, the other big piece of data that could change the Fed鈥檚 thinking before its next meeting are likely the latest updates on monthly inflation.
In the bond market, yields swung following the weaker-than-expected data on manufacturing. The yield on the 10-year Treasury recovered from an initial drop to remain steady at 3.84%. It helps set rates for mortgages and other important loans.
The two-year yield, which moves more on expectations for the Fed, also pared losses to hold steady at 4.90%.
In markets abroad, stocks were modestly lower in Europe. In Asia, Japan鈥檚 Nikkei 225 rose 1.7% to add to its huge run to start the year. The quarterly 鈥渢ankan report鈥� of business sentiment compiled by the Bank of Japan showed an improvement for the fifth consecutive quarter, from June last year.
Stocks were higher across much of the rest of Asia, with Hong Kong up 2.1% and South Korea up 1.5%
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AP Business Writers Yuri Kageyama and Matt Ott contributed.
Stan Choe, The Associated Press
