Trump Media Slides Another 14.2%

Announcement of Truth Social streaming service didn't help stock
By Newser Editors and Wire Services
Posted Apr 16, 2024 3:42 PM CDT
Stocks Slip After Remarks From Fed Officials
The New York Stock Exchange is seen, through a window guard, on Tuesday, April 16, 2024 in New York.   (AP Photo/Peter Morgan)

Most US stocks slipped Tuesday as Treasury yields climbed again on rising expectations that interest rates may stay high for a while.

  • The S&P 500 fell 10.41 points, or 0.2%, to 5,051.41.
  • The Dow Jones Industrial Average rose 63.86 points, or 0.2%, to 37,798.97.
  • The Nasdaq composite fell 19.77 points, or 0.1%, to 15,865.25.
UnitedHealth helped support the market after jumping 5.2% on a stronger-than-expected profit report. Morgan Stanley was another winner, rising 2.5% after also topping expectations. But the majority of stocks weakened after top officials at the Federal Reserve warned it may not cut interest rates for a while after inflation reports this year came in worse than expected, the AP reports.

The wilder action on Wall Street was in the bond market, where Treasury yields swung following comments by Federal Reserve Chair Jerome Powell. They've been climbing rapidly as traders give up on hopes that the Fed will deliver many cuts to interest rates this year. Powell said at an event Tuesday that the central bank has been waiting to cut its main interest rate, which is at its highest level since 2001, because it first needs more confidence inflation is heading sustainably down to its 2% target. The yield on the two-year Treasury, which closely tracks expectations for Fed action, shot as high as 5% immediately after Powell spoke, back to where it was in November.

High rates can translate into more expensive mortgages, and stocks of homebuilders slumped after a report showed homebuilders broke ground on fewer sites last month than economists expected. Lennar fell 2.3%, and DR Horton sank 2%. Northern Trust slumped 5% after the financial services company reported weaker earnings for the start of the year than analysts expected. Johnson & Johnson sank 2.1% despite topping profit forecasts. Its revenue came in a whisper below expectations.

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The stock of Donald Trump's social media company also slumped again. Trump Media & Technology Group fell another 14.2% to follow up on its 18.3% slide from Monday. The company said it's rolling out a service to stream live TV on its Truth Social app, including news networks and "other content that has been cancelled, is at risk of cancellation, or is being suppressed on other platforms and services." The stock has dropped below $23 after nearing $80 last month as euphoria around the stock faded and the company made moves to clear the way for some investors to sell shares.

(More stock market stories.)

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