The stock market was struggling again Thursday even though bond yields pulled back. Blame Salesforce.
The Dow Jones Industrial Average was down 361 points, or 0.9%. The S&P 500 was down 0.3%. The Nasdaq Composite was down 0.3%.
The yield on the 2-year Treasury note was down to 4.941%. The 10-year yield was down to 4.569%. Bond yields slid even further after initial jobless claims came in higher than expected and first-quarter GDP growth was revised lower.
Though those updates would normally be good news for stocks that have been struggling amid higher yields and worries about whether the Federal Reserve can cut interest rates in the coming months, Salesforce was a huge drag on the major indexes.
Salesforce stock was sinking shortly after the market opened. With Salesforce’s stock price down $46, it was shaving off roughly 302 points from the Dow, according to Dow Jones Market Data. That explains the Dow’s decline.
“Outside of that report, investors remain defensive following a surge in rates earlier this week,” writes Bespoke Investment Group co-founder Paul Hickey. “Rates are lower this morning, but until we get through this week’s inflation data, it will be hard for investors to breathe any easier.”
Traders will get the Federal Reserve’s preferred inflation gauge on Friday when personal consumption expenditures price data are released. That will likely dictate the path forward for stocks and bonds, alike.
