(AP) – Shares fell in the morning auction on Wall Street on Wednesday, a day after a broad rally interrupted a three-day losing streak.
The S&P 500 was down 0.9% as of 10:19 a.m. east. The Dow Jones Industrial Average was down 248 points, or 0.7%, to 34,743, and the Nasdaq was down 1.4%.
Technology and communications were the heaviest weights in the broad market. Microsoft was down 1.9% and Facebook’s parent company, Meta, was down 2.4%.
Bond yields fell. Yields on 10-year Treasury bonds fell to 2.03% from 2.04% on Tuesday at the end.
The potential for escalation of the Russia-Ukraine conflict has so far been a key concern of investors this week. Wider markets intensified on Tuesday after Russia announced the withdrawal of some of its troops gathered on the border with Ukraine. Tensions remain high as NATO and Western officials question the allegations.
This week, energy prices were particularly volatile. Russia is a major producer of energy, and a military conflict could disrupt supplies and push markets. U.S. crude oil prices rose 2.2 percent on a benchmark, turning from a 3.6 percent drop on Tuesday. Energy reserves have grown by reversal. Phillips 66 grew 1.5%.
European markets were mostly lower.
Wall Street also keeps the focus on the Federal Reserve. In the afternoon, the central bank will publish the minutes of its last policy meeting and may reveal additional clues about the next steps it plans to take to raise interest rates to fight inflation. Traders see a 50 percent chance of a first increase in March by half a percentage point, twice the traditional move.
Rising inflation is cutting the profits and incomes of businesses in a wide range of industries. Many companies are raising prices to offset costs, including producer of cereals Kellogg. This has raised concerns that consumers may end up cutting costs, although a recent Department of Commerce report shows that retail sales remained strong in January as the threat of the omicron version of COVID-19 disappeared.
The government said last month, retail sales rose 3.8% with seasonal adjustments, surpassing most economists’ forecasts. This is compared to the previous month, when sales fell 2.5%.
Wall Street is also tracking recent corporate earnings reports to assess how companies are coping with supply chain challenges and pressures due to rising inflation.
Airbnb rose 2.5% after reporting strong financial results and giving investors an encouraging revenue forecast.
DoorDash will announce its latest results late Wednesday night, and Walmart will report its results on Thursday.
Investors are also looking at the latest round of corporate earnings, including DoorDash on Wednesday and Walmart on Thursday.
In electronic trading on the New York Mercantile Exchange, electronic trading in U.S. crude oil rose $ 1.28 to $ 93.35 a barrel. On Tuesday, it fell 3.6%. Brent crude, an international standard, added $ 1.51 to $ 94.79 a barrel.
Oil prices have been volatile amid tensions over Russian troop build-up on the border with Ukraine. Russia is a major energy producer, and military actions that disrupt supplies could push markets and global industry.
In foreign exchange trading, the US dollar rose to 115.64 Japanese yen from 115.63 yen. The euro was worth $ 1.1370 from $ 1.1362.