U.S. stocks slipped Wednesday ahead of the release of the Federal Reserve’s latest meeting minutes and after fresh data on the labor market.
The S&P 500 lost 0.1% and the Dow Jones Industrial Average fell 0.1%, a day after both fell from the broad market’s recent all-time closing highs. The Nasdaq Composite dropped 0.4%, putting the index of large-cap technology stocks on a path to break its recent winning streak.
Investors have propelled the major indexes into record territory following signs that the economy is recovering and that the Federal Reserve doesn’t plan to pull back on supportive policies in the near term. Government bond yields have also dropped to their lowest in over four months, bolstering appetite for assets like growth stocks that deliver higher returns.
“It is really the tech space that’s been driving the market,” said Esty Dwek, head of global market strategy at Natixis Investment Solutions. “Over the next few weeks and months, hopefully we’ll see that U.S. growth is holding up well, that will continue to support markets.”
Government bonds continued to rally, sending the yield on the benchmark 10-year Treasury note ticking down to 1.288%, its lowest level since February, and extending its recent slide into a third day. Yields drop when bond prices rise.