Stock market today: Wall Street weakens as its post-election boom slows some more

NEW YORK (AP) — U.S. stocks slipped Thursday as the market’s big burst following Donald Trump’s election continued to cool.

The S&P 500 fell 0.6%, though it’s still near its all-time high set on Monday. The Dow Jones Industrial Average dropped 207 points, or 0.5%, and the Nasdaq composite sank 0.6%.

Cisco Systems’ 2.1% drop weighed on the market, even though the tech giant reported stronger profit for the latest quarter than analysts expected. Investors may have been looking for it to raise its financial forecasts more, analysts suggested.

The stock market broadly has been rising faster than corporate profits, which raises the volume on criticism from skeptics that it’s gotten too expensive. The S&P 500 is still up nearly 25% for the year so far, on top of last year’s leap of 24.2%.

Some of the stocks that got the biggest bump from Trump’s election also lost momentum. Tesla fell 5.8% for just its second loss since Election Day. It’s run by Elon Musk, who has become a close Trump ally.

Smaller stocks also fell harder than the rest of the market, and the Russell 2000 index of small stocks lost 1.4%. It’s a turnaround from the election’s immediate aftermath, when the thought was that an “America First” president would benefit domestically focused companies more than big multinationals that could be hurt by tariffs and trade wars.

Even though Republicans have swept control of the White House, Senate and House of Representatives, which could give them more leeway to push through their policies, “promises made on the campaign trail may not be implemented immediately, with final legislation likely to be a pared-down version of the original proposals,” according to Solita Marcelli, chief investment officer, Americas, at UBS Global Wealth Management.

Stocks also felt the effects of swinging yields in the bond market following the latest hotter-than-expected economic reports and comments from Federal Reserve Chair Jerome Powell. The Fed just cut its main interest rate earlier this month for the second time this year to ease the pressure on the economy, and investors are eager for more.

But short-term yields climbed after Powell said, “The economy is not sending any signals that we need to be in a hurry to lower rates. The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.”

The two-year Treasury yield, which closely tracks expectations for Fed action, rose to 4.35% from 4.28% late Wednesday.

Earlier in the day, it had wavered after a report showed prices paid at the U.S. wholesale level were 2.4% higher in October from a year earlier. That was an acceleration from September’s 1.9% wholesale inflation rate and a worse jump than economists expected.

A separate report, meanwhile, suggested the U.S. job market remains solid. Fewer U.S. workers applied for unemployment benefits last week in the latest signal that layoffs aren’t taking off.

The yield on the 10-year Treasury also swiveled up and down before sitting at 4.45%, where it was late Wednesday.

On Wall Street , Super Micro Computer tumbled 11.4 % for one of the worst losses in the S&P 500 after telling U.S. regulators it needs more time to file its financial statements for the latest quarter, which ended in September.

The server maker’s stock has been one of the biggest winners of the artificial-intelligence boom, but it’s struggled recently, particularly after Ernst & Young resigned as its public accounting firm. A special committee of the company’s board has since said that a three-month investigation found “no evidence of fraud or misconduct on the part of management or the Board of Directors.”

Helping to keep Wall Street’s losses in check was The Walt Disney Co., which rose 6.2% after the entertainment giant reported stronger profit for the latest quarter than analysts expected. CEO Robert Iger credited improved profits at its streaming businesses and strong box-office results for its movies, including “Inside Out 2” and “Deadpool & Wolverine,” among other things.

Tapestry shares climbed 12.8% after the luxury fashion company said it’s terminating its merger with Capri, another luxury brand owner. The companies agreed to an $8.5 billion deal last year to unite the makers of Coach and Michael Kors handbags, but the tie-up faced numerous challenges, including a lawsuit from the Federal Trade Commission to block the deal on antitrust grounds.

Capri shares rose 4.4%.

ASML, a major supplier to the global chip industry, also gave some encouraging signals for technology stocks. The Dutch company said it expects global semiconductor sales to top $1 trillion by 2030, with the help of demand related to artificial-intelligence technology, and it stood by its long-term financial forecasts. ASML shares that trade in the United States rose 2.9%.

All told, the S&P 500 fell 36.21 points to 5,949.17. The Dow dropped 207.33 to 43,750.86, and the Nasdaq composite sank 123.07 to 19,107.65.

In stock markets abroad, European indexes rose, including a 1.4% jump for Germany’s DAX. Asian markets were mixed, meanwhile. Hong Kong’s Hang Seng dropped 2%, but South Korea’s Kospi added 0.1%.

AP Business Writers Matt Ott and Elaine Kurtenbach contributed.

People pass the New York Stock Exchange, right, on Wednesday, Nov. 13, 2024, in New York. (AP Photo/Peter Morgan)

FILE - A sign marking the intersection of Broadway and Wall Street is shown in New York's Financial District on Oct. 30, 2024. (AP Photo/Peter Morgan, File)

Currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Nov. 14, 2024. (AP Photo/Ahn Young-joon)

A currency trader passes by a screen showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Nov. 14, 2024. (AP Photo/Ahn Young-joon)

Currency traders work at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Thursday, Nov. 14, 2024. (AP Photo/Ahn Young-joon)

NEW YORK (AP) — Right-hander Jonathan Loáisiga is guaranteed $5 million in his one-year contract from the New York Yankees as he returns from Tommy John surgery and could earn up to $10.5 million over two seasons.

Loáisiga gets a $500,000 signing bonus and a $4.5 million salary next season as part of the agreement announced Saturday.

New York has a $5 million team option for 2026 with no buyout. Loáisiga could earn $500,000 in performance bonuses in 2026: $100,000 apiece for 50 innings and each additional five through 70.

Pitching coach Matt Blake said last week the 30-year-old right-hander could return in late April or May from Tommy John surgery last May 1.

“I imagine him being one of the high-leverage guys,” Blake said. “Obviously, we got to take some time to get him right, make sure we don’t rush him into competition.”

Loáisiga had a $2.5 million salary this year in his final season of arbitration eligibility and became a free agent.

He made three relief appearances during the first seven days of the season, then went on the injured list because of a strained right flexor muscle, then had Tommy John surgery with team physician Dr. Christopher Ahmad.

Loáisiga was limited to 17 games in 2023 by right elbow inflammation that sidelined him from the Yankees between April 5 and Aug. 8.

He is 19-11 with a 3.44 ERA in 11 starts and 152 relief appearances over seven seasons, striking out 207 and walking 72 in 219 2/3 innings. Loáisiga averaged 97.8 mph with his sinker in 2023.

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FILE - New York Yankees relief pitcher Jonathan Loáisiga fields a ground ball from Houston Astros pinch hitter Jon Singleton during the sixth inning of a baseball game March 28, 2024, in Houston. (AP Photo/Kevin M. Cox, File)