US Stocks Drop Before Fed Chair's Speech

U.S. stock markets experienced a downturn on Thursday, marking the end of a two-week rally as investors braced for a pivotal speech by Federal Reserve Chair Jerome Powell scheduled for Friday. The S&P 500 index fell by 0.9%, its most significant drop during the recent rally, while the Dow Jones Industrial Average decreased by 177 points, or 0.4%. The Nasdaq composite saw a steeper decline of 1.7%, reflecting growing concerns over rising Treasury yields and mixed economic data. The S&P 500 closed at 5,570.64, down 50.21 points, while the Dow finished at 40,712.78, down 177.71 points. The Nasdaq composite ended the day at 17,619.35, down 299.63 points. Additionally, the Russell 2000 index, which tracks smaller companies, fell by 0.9% to 2,150.03. The market's decline was attributed to pressures from the bond market, as high interest rates continue to weigh on the economy. Despite Thursday's losses, the S&P 500 has gained 16.39 points, or 0.3%, for the week, while the Dow is up slightly by 53.02 points, or 0.1%. The Nasdaq has seen a minor decline of 12.37 points, or 0.1%. Year-to-date, the S&P 500 has risen by 16.8%, the Dow by 8%, and the Nasdaq by 17.4%, indicating a generally positive trend for the year despite recent fluctuations.