NEW YORK (AP) — U.S. stocks drifted through a quiet Monday to finish mixed, as markets around the world stabilized following a wild week of extreme swings.
The S&P 500 finished little changed, edging up by less than 0.01%, after flipping between small gains and losses through the day. The Dow Jones Industrial Average slipped 140 points, or 0.4%, and the Nasdaq composite rose 0.2%.
Many European and Asian stock markets were also relatively quiet. That’s a notable turn after last week kicked off with the worst day for Japanese stocks since the Black Monday crash of 1987, only to give way to the best day since 2022 for U.S. stocks.
The value of the Japanese yen eased on Monday, calming some more after an earlier surge sent shockwaves through markets. The sharp rise for the Japanese yen following a hike to interest rates by the Bank of Japan forced many hedge funds and other investors to abandon a popular trade all at once, where they had borrowed yen at cheap rates to invest elsewhere. The forced selling reverberated around the world.
A promise last week by a top Bank of Japan official not to raise rates further as long as markets are “unstable” has helped calm the market. But other worries were also behind last week’s turbulence for markets, including concerns about a slowing U.S. economy.
This upcoming week will feature reports on inflation and how much U.S. shoppers are spending at retailers. The best-case scenario for Wall Street would be data showing a continued slowdown in inflation, combined with strengthening U.S. retail sales.
That would indicate the Federal Reserve is successfully walking the tightrope it’s been attempting since it began hiking interest rates sharply in 2022: It wants the U.S. economy to slow by enough to snuff out high inflation, but not so much that it causes a recession.
A string of worse-than-expected economic data recently has raised worries the Fed may be leaning too far to one side on the tightrope after keeping its main interest rate at a two-decade high. The lowlight came earlier this month when a report showed hiring by U.S. employers weakened by far more than expected.
For the inflation data, meanwhile, strategists at Bank of America led by Ohsung Kwon say a hotter-than-expected reading would be a bigger surprise for the market than a cooler-than-expected figure. That could lead to “a major downside event” for the market if inflation readings come in worse than forecast.
The Fed does not have an easy way to fix a weakening economy where inflation in worsening, a phenomenon called “stagflation.” The central bank could ease rates, which would give the U.S. economy an upward push but also threaten to worsen inflation. Or it could continue to keep its rate high. That would put downward pressure on inflation but also inflict more pain on the economy.
Of course, the U.S. economy is still growing, and many economists see a recession as unlikely. But worries about it have nonetheless put downward pressure on Treasury yields in the bond market.
They fell again Monday ahead of the upcoming data reports. The yield on the 10-year Treasury slipped to 3.90% from 3.94% late Friday. The two-year Treasury yield, which more closely tracks expectations for Fed action, fell to 4.01% from 4.06%.
On Wall Street, the majority of stocks weakened. But a 4.1% jump for Nvidia helped offset many of those losses. Because it's one of the largest U.S. stocks by value, Nvidia's movements carry extra weight on the S&P 500 and other indexes.
It and other Big Tech behemoths have been shaky recently and have been mostly declining the last month on worries their stocks shot too high in the Wall Street's frenzy around artificial-intelligence technology.
KeyCorp jumped 9.1% after the regional bank announced a $2.8 billion investment from the Bank of Nova Scotia. The Cleveland bank said the cash influx will allow it to drive further growth in its investment banking and wealth management businesses.
On the losing end was Hawaiian Electric, which reported weaker results for the spring than analysts expected. The company also said it’s not sure it will be able to last at least another year as a “going concern” unless it can find financing to help pay the estimated $1.71 billion in liabilities it has built up related to the Maui windstorm and wildfire. Its stock sank 14.5%.
All told, the S&P 500 rose by less than a quarter of a point, 0.23, to 5,344.39. The Dow dropped 140.53 to 39,357.01, and the Nasdaq composite gained 35.31 to 16,780.61.
Several big companies will report their latest earnings results later in the week, including Walmart and Home Depot. Most big U.S. companies have been reporting better profits for the spring than analysts expected, but pressure is on retailers amid worries about how spenders at the lower end of the income spectrum are faring.
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
FILE - Specialist John McNierney, right, works with a colleague on the floor of the New York Stock Exchange, Aug. 7, 2024. (AP Photo/Richard Drew, File)
FILE - People walk past the New York Stock Exchange on Aug. 7, 2024 in New York. (AP Photo/Peter Morgan, File)
A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between U.S. dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Monday, Aug. 12, 2024. (AP Photo/Ahn Young-joon)
BEIRUT (AP) — Lebanese health authorities reported that at least three people were killed and more than a dozen others wounded in an Israeli strike on Beirut on Friday, the first such Israeli attack on the Lebanese capital in months.
The Israeli strike came after Hezbollah pounded northern Israel with rockets and the region awaited the revenge promised by the militant group’s leader Hassan Nasrallah for this week’s mass bombing attack on pagers and walkie-talkies belonging to Hezbollah members.
The target of Israel’s airstrike in Beirut’s crowded southern suburbs during rush hour, as people were leaving their work and students heading home from school, wasn't immediately clear. Lebanon's Health Ministry didn't elaborate on the identities of the victims.
Lebanese news stations broadcast footage of wounded people being pulled from the ruins of a flattened building as ambulances rushed to the scene of the strike.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
BEIRUT (AP) — Israel hit a Beirut suburb with an airstrike Friday, not long after Hezbollah pounded northern Israel with 140 rockets following a vow by the militant group’s leader Hassan Nasrallah to retaliate against Israel for a mass bombing attack, the Israeli military and the militant group said.
The Israeli military said it had carried out a “targeted strike” in Beirut. It offered no further immediate details, but explosions could be heard coming from the city’s southern suburbs.
Beirut-based Al-Mayadeen TV reported that a drone fired several missiles on the heavily-populated area known as Dahiyeh.
A Hezbollah official, speaking on condition of anonymity because he wasn’t authorized to speak to the media, confirmed to The Associated Press that an airstrike struck the area, without giving further details.
The strike came after Hezbollah pounded Israel with 140 rockets, which the Israeli military said came in three waves targeting sites along the ravaged border with Lebanon.
Following the attacks, the Israeli military said that it had struck areas across southern Lebanon targeting Hezbollah infrastructure, but didn’t provide details of damage.
Hezbollah said that its attacks had targeted several sites along the border with Katyusha rockets, including multiple air defense bases as well as the headquarters of an Israeli armored brigade they said they’d struck for the first time.
The Israeli military said that 120 missiles were launched at areas of the Golan Heights, Safed and the Upper Galilee, some of which were intercepted. Fire crews were working to extinguish blazes caused by pieces of debris that fell to the ground in several areas, the military said.
The military didn’t say whether any missiles had hit targets or caused any casualties.
Another 20 missiles were shot at the areas of Meron and Netua, and most fell in open areas, the military said, adding that no injuries were reported.
Hezbollah said that the rockets were in retaliation for Israeli strikes on villages and homes in southern Lebanon, not two days of attacks widely blamed on Israel that set off explosives in thousands of Hezbollah pagers and walkie-talkies.
On Thursday, Israel said its military had struck “hundreds of rocket launcher barrels” in southern Lebanon, saying that they “were ready to be used in the immediate future to fire toward Israeli territory”
The army also ordered residents in parts of the Golan Heights and northern Israel to avoid public gatherings, minimize movements and stay close to shelters in anticipation of the rocket fire that eventually came Friday.
Hezbollah and Israel have exchanged near-daily fire since Oct. 8, a day after the Israel-Hamas war’s opening salvo, but Friday’s rocket barrages were heavier than normal.
Nasrallah on Thursday vowed to keep up daily strikes on Israel despite this week’s deadly sabotage of its members’ communication devices, which he described as a “severe blow.”
At least 20 were killed in the attacks and thousands were wounded when pagers, walkie-talkies and other devices exploded in Lebanon on Tuesday and Wednesday.
The sophisticated attacks have heightened fears that the cross-border exchanges of fire will escalate into all-out war. Israel has neither confirmed nor denied involvement in the attacks.
In recent days, Israel has moved a powerful fighting force up to the northern border, officials have escalated their rhetoric, and the country’s security Cabinet has designated the return of tens of thousands of displaced residents to their homes in northern Israel an official war goal.
Fighting in Gaza has slowed, but casualties continue to rise.
Overnight, Palestinian authorities said that 15 people were killed in multiple Israeli attacks in the Gaza Strip.
Those included six people, including an unknown number of children, in an airstrike early Friday morning in Gaza City that hit a family home, Gaza’s Civil Defense said. Another person was killed in Gaza City when a strike hit a group of people on a street.
Israel maintains that it only targets militants, and accuses Hamas and other armed groups of endangering civilians by operating in residential areas. The military, which rarely comments on individual strikes, had no immediate comment.
Gaza’s Health Ministry says that more than 41,000 Palestinians have been killed in the territory since Hamas’ Oct. 7 attack. The ministry doesn’t differentiate between fighters and civilians in its count, but says a little over half of those killed were women and children.
Israel says it has killed more than 17,000 militants, without providing evidence.
More than 95,000 people have also been wounded in Gaza since Oct. 7, the Health Ministry said.
The war has caused vast destruction and displaced about 90% of Gaza’s population of 2.3 million.
Ambulances arrive at the scene of an Israeli missile strike in the southern suburbs of Beirut, Friday, Sept. 20, 2024. (AP Photo/Hassan Ammar)
People stand on top of a damaged car at the scene of a missile strike in the southern suburbs of Beirut, Friday, Sept. 20, 2024. (AP Photo/Bilal Hussein)
People and rescuers gather at the scene of an Israeli missile strike in the southern suburbs of Beirut, Friday, Sept. 20, 2024. (AP Photo/Bilal Hussein)
People gather near a damaged building at the scene of an Israeli missile strike in the southern suburbs of Beirut, Friday, Sept. 20, 2024. (AP Photo/Bilal Hussein)
People gather at the scene of an Israeli missile strike in the southern suburbs of Beirut, Friday, Sept. 20, 2024. (AP Photo/Bilal Hussein)
People gather at the scene of an Israeli missile strike in the southern suburbs of Beirut, Friday, Sept. 20, 2024. (AP Photo/Bilal Hussein)
Israeli Iron Dome air defense system fires to intercept a rocket fired from Lebanon, in northern Israel, Friday, Sept. 20, 2024. (AP Photo/Leo Correa)
