US stocks are facing more losses on Thursday as concerns about higher interest rates and a Salesforce sell-off weigh on investors’ confidence. The Dow Jones Industrial Average dropped nearly 300 points, following a slide of over 400 points on Wednesday. The S&P 500 and Nasdaq Composite also fell, reflecting the overall negative sentiment in the market.
The fear of rate cuts being less likely due to inflation data and disappointment over Nvidia’s earnings have contributed to the decline in stocks. Bond yields have risen to their highest levels since early May, adding to the pressure on the market. Salesforce’s poor results, with a 15% drop in shares, have raised concerns about the impact on other companies in the AI sector.
Additionally, the US economy grew at a slower pace than initially estimated in the first quarter, further dampening investor sentiment. Retail earnings before the bell also provided insights into consumer spending habits, with Kohl’s and Best Buy both reporting disappointing results.
In other news, the White House has warned that extending Trump’s tax cuts could lead to an ‘inflation bomb’, while activist investor Nelson Peltz has sold his entire stake in Disney after losing a proxy battle. Overall, the market is facing challenges from various fronts, leading to a cautious outlook among investors.
