Most US stocks rise, but drops for tech pull Wall Street lower

Three out of every five stocks within the S&P 500 likewise climbed, and the index trimmed 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 multiple times 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 10.6% for Micron Technology, 6.9% for for Advanced Micro Devices and 1.3% for Nvidia.

Such stocks have been zigzagging in recent weeks because of worries that they had become too expensive. They also have big influence on the S&P 500 and other indexes because they’ve grown so huge in size.

Kroger swung from an early loss to a gain of 1.3% 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 also flipped an initial loss and rose 4.9% after reporting stronger results 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.

All told, the S&P 500 slipped 16.13 points to 7,483.23. The Dow Jones Industrial Average dropped 13.96 to 52,305.24, and the Nasdaq composite fell 173.69 to 26,040.03.

Gold’s price recovered from an early to rise. It briefly sank below $3,980 per ounce overnight, down from more than $5,300 per ounce early this year. 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 sank 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.