Stock Markets on Wall Street under Pressure: Economic Data and Interest Rate Outlook Cause Losses

The latest economic data, coupled with the expected interest rate policy of the Federal Reserve, put pressure on US stock markets on Tuesday. Above-average increased labor costs and higher housing prices in the first quarter reignited inflation concerns and clouded the prospect of a less aggressive rate stance by the central bankers. The consumer sentiment, which surprisingly weakened in April, and a mixed record of quarterly results from major US companies further contributed to the skeptical market mood. The Dow Jones Industrial shed significant ground after a recovery phase in recent days, closing down 0.99 percent just before the end of trading, while the S&P 500 fell 0.90 percent and the tech-heavy Nasdaq 100 recorded a decline of 1.10 percent. Among individual stocks, several drivers stood out. The conglomerate 3M attracted attention with quarterly numbers that exceeded profit expectations, and its shares saw a 3 percent increase. Despite an adjustment in dividend policy following the spin-off of its healthcare division Solventum, surprises were absent. McDonald's shares experienced a recovery after an initial trade decline and closed up 0.2 percent. Although the fast-food giant continued to suffer from the conflict in the Middle East and struggled in its domestic market, the first-quarter profit was better than expected. Coca-Cola shed its initial gains after shares fell 0.5 percent despite a pleasing sales forecast. In the S&P 100, Eli Lilly stood out with a gain of 5.6 percent, supported by rising sales and profits thanks to successful products in the weight loss segment. Additionally, the pharmaceutical company was optimistic for the current fiscal year. Paypal was among the winners in the Nasdaq 100 after the announcement of quarterly figures, with a gain of 2.1 percent, while Tesla lost part of the strong gains from the previous day, decreasing by 4.6 percent. Warner Brothers recorded a 9.0 percent drop, reaching the lowest level in years, with the stock suffering from speculation about the potential loss of NBA broadcasting rights. GE Healthcare lost 13.2 percent in the Nasdaq Composite after a disappointment in sales and results in the past quarter.