The stock market showed little improvement after a recent decline. The Dow Jones Industrial Average was slightly above its starting point. The S&P 500 rose a little and the Nasdaq Composite rose the most.
Interest rates, which are like the price of borrowing money, rose for the fourth day in a row. This made it a little more difficult for the stock to perform well. People who invest in the stock market closely follow what is happening in the Middle East.
A special figure called the “10-year yield” came very close to 5%. This figure has not been this high in 16 years. Another special number, the “2-year yield,” which helps us know what people expect about interest rates, rose to the highest point since 2006, which was a long time ago.
Jerome Powell, head of the Federal Reserve, said some things on Thursday that people paid close attention to. They wanted to know if the Federal Reserve plans to make borrowing money more expensive. This is because, although some things are difficult right now, the American economy is still doing quite well. Some experts question whether the Federal Reserve should change how much they think prices should rise.
People who invest in the stock market are also paying attention to how higher interest rates could affect companies. Right now, we’re in a time where many companies are reporting how they’ve done over the past few months.
Tesla boss Elon Musk said Wednesday he’s a little worried. He thinks that if it costs more to borrow money, some people may not be able to afford Tesla electric cars. This came after Tesla did not do as well as expected. Because of this, Tesla shares fell about 5% before the stock market opened.
On the other hand, Netflix, which many people use to watch shows and movies, had good news. Its shares rose about 14% before the market opened. They said a lot more people signed up to use their service and they’re going to charge a little more in the US.
Also read: Tensions in the Middle East and earnings reports affect the stock market