Dow continues downward trend due to disappointing earnings and concerns over interest rates causing anxiety

US stocks faced another day of losses on Thursday, with concerns about rising interest rates and a Salesforce sell-off dampening investor sentiment. The Dow Jones Industrial Average dropped 0.8%, shedding over 300 points, following a 400-point decline the previous day. The S&P 500 fell 0.3%, while the Nasdaq Composite dropped about 0.5%.

The market’s downturn was fueled by worries about the likelihood of rate cuts, as data showed inflation cooling less than the Federal Reserve desired. Additionally, hopes that Nvidia’s strong earnings would boost the market were dashed.

Bond yields hit their highest levels since early May this week, with the 10-year Treasury rising above 4.5%. Although the benchmark yield retreated slightly on Thursday, it remained above the key level.

Salesforce’s disappointing results added to the market’s woes, with the software company’s shares plummeting 15% after announcing a slowdown in sales growth. This raised concerns about potential losers in the AI sector.

Furthermore, new government data revealed that the US economy grew at a slower pace than initially estimated in the first quarter. The Bureau of Economic Analysis revised the GDP growth rate down to 1.3% from the initial 1.6% reading in April.

Retail earnings also painted a bleak picture, with Kohl’s shares tumbling after reporting a surprise quarterly loss and reducing its sales forecast. Best Buy posted larger-than-expected declines in comparable sales, indicating consumer caution in nonessential spending.

Overall, the market’s struggles reflect a mix of economic uncertainties, rate concerns, and disappointing corporate performances, leaving investors on edge about the future direction of stocks.