Most US stocks rise, but drops for tech pull indexes lower

NEW YORK (AP) — Most U.S. stocks rose, but drops for some influential technology companies kept the market in check. The S&P 500 slipped 0.2% Wednesday for its eighth loss in 11 days. The Dow Jones Industrial Average edged down less than 0.1%, and the Nasdaq composite fell 0.7%. Stocks got some help from the bond market as Treasury yields pared their gains following a weaker-than-expected report on U.S. manufacturing. That could allow the Federal Reserve to hold off on aggressive increases to interest rates this year. Some recent AI-related winners including Micron Technology fell, weighing on the market.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

NEW YORK (AP) — Most of Wall Street is rising Wednesday, but drops for some influential technology stocks are keeping the market in check.

The S&P 500 was nearly unchanged, coming off a two-day winning streak following five straight losses. The Dow Jones Industrial Average was up 50 points, or 0.1%, with an hour remaining in trading, and the Nasdaq composite was 0.4% lower.

General Mills helped lead the market and climbed 7.7% after the company behind the Cheerios and Progresso brands reported better results for the latest quarter than analysts expected. It also announced a plan to cut $3 billion in costs over four years.

Three out of every five stocks within the S&P 500 climbed, and the index pared an early drop of 0.7% after a report said U.S. manufacturing grew last month at a slightly slower speed than economists expected. The survey from the Institute for Supply Management also said prices were increasing at a slower pace.

The data could take some upward pressure off inflation, which in turn could make the Federal Reserve less likely to raise interest rates later this year. Following the report, the yield on the 10-year Treasury pulled back from a peak near 4.50% in the morning and fell to 4.47%.

That offered some relief because higher yields make it more expensive for businesses and households to borrow money and in turn can slow the economy. Higher yields also tend to undercut prices for stocks and other investments. Yields have been on the rise since the war with Iran began because of worries about high inflation caused by expensive oil.

The heaviest weights on the market were stocks that had soared earlier in the euphoria around artificial-intelligence technology, including drops of 9.4% for Micron Technology, 10.8% for Applied Materials and 6.1% for Advanced Micro Devices. Such stocks have been zigzagging in recent weeks because of worries that they had become too expensive.

Kroger swung from an early loss to a gain of 0.5% after the grocer said it agreed to buy Giant Eagle for $1.25 billion in cash. It will also take on $400 million in liabilities to buy the food and pharmacy retailer with stores stretching from Indiana to Maryland.

Nike flipped an initial loss and rose 3.4% after reporting a stronger profit for the latest quarter than analysts expected. The athletic-gear giant is in the midst of a turnaround attempt by CEO Elliott Hill, and he said it’s still facing headwinds dragging on its revenue.

Gold's price likewise recovered from an early loss to rise. It briefly sank below $3,980 per ounce overnight, down from more than $5,300 per ounce early this year, when Treasury yields were higher. When Treasurys pay more in interest, investors become less willing to pay high prices for investments. That includes gold, which pays its holders nothing.

But the weaker-than-expected manufacturing report and ensuing easing of Treasury yields sent gold back up 1.1% to settle at $4,082.40 per ounce.

In the oil market, prices eased as hope remains that the United States and Iran may ultimately end their war and reopen the Strait of Hormuz to oil tankers delivering crude. The price for a barrel of Brent crude, the international standard, fell 1.9% to $71.57.

In stock markets abroad, indexes were mixed in Europe and Asia.

South Korea’s Kospi fell 2% for one of the world’s biggest moves. It’s been one of the world’s brightest stars thanks to euphoria around SK Hynix and other AI stocks, and the index is still up 97% for the year so far.

In Tokyo, the Nikkei 225 rose 0.6% after the Japanese yen fell to a 40-year low against the U.S. dollar.

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AP Business Writer Yuri Kageyama contributed to this report.