NEW YORK (AP) 鈥� U.S. stock indexes edged lower following another reminder that big, unsettling policy changes are underway because of President Donald Trump, along with more signals suggesting the U.S. economy remains solid for now. The S&P 500 slipped 0.2% Thursday after flipping between modest gains and losses through the day. The Dow Jones Industrial Average slipped by less than 0.1% and the Nasdaq composite fell 0.3%. Accenture fell to one of the market鈥檚 larger losses on worries about the hit it may take to revenue from the U.S. government as Elon Musk leads efforts to cut federal spending.
THIS IS A BREAKING NEWS UPDATE. AP鈥檚 earlier story follows below.
NEW YORK (AP) 鈥� U.S. stocks are drifting Thursday following signals that the U.S. economy , for the moment at least, along with reminders that big, unsettling policy changes are underway because of .
The S&P 500 was down 0.4% in late trading after flipping between modest gains and losses through the day. The Dow Jones Industrial Average was down 29 points, or 0.1%, as of 2:50 p.m. Eastern time, and the Nasdaq composite was 0.5% lower.
Wall Street has been for weeks on a ride, as stock prices veer on about what will . Stocks got a after the said the economy remains solid enough at the moment to leave interest rates where they are.
More data arrived Thursday to bolster that view. One report said slightly last week than economists expected. It鈥檚 the latest sign of a potentially 鈥渓ow fire, low hire鈥� job market.
A separate report said were stronger last month than economists expected, while a third said manufacturing growth in the mid-Atlantic region appears to be better than economists expected.
But Fed Chair Jerome Powell also stressed on Wednesday that extremely high uncertainty is making it difficult to forecast what will happen next.
It's not just uncertainty about the trade war affecting Wall Street. Accenture fell to one of the market's larger losses Thursday even though the consulting and professional services company reported slightly better profit and revenue for the latest quarter than analysts expected.
Worries are rising about the hit Accenture may take to its revenue from the U.S. government as Elon Musk leads . The federal government accounted for 17% of Accenture's North American revenue last fiscal year, and its stock sank 7.9%.
The broad U.S. stock market was likely due for its recent drop, which took it more than in just a few weeks, after prices climbed much faster than corporate profits to make it look too expensive, said Barry Bannister, chief equity strategist at Stifel.
He said the S&P 500 could bounce higher in the near term, particularly after Fed officials indicated Wednesday they see room to cut interest rates twice this year. Lower interest rates would give a boost to the economy, as well as prices for investments. The market has also traditionally had 鈥渞elief rallies鈥� after major, long-term upward runs for stocks cracked.
But Bannister expects stock prices to remain under pressure as the economy鈥檚 growth slows more sharply in the second half of the year and as inflation remains stubbornly high. That could create a mild form of 鈥渟tagflation,鈥� which is something the Fed doesn鈥檛 have good tools to fix. The Fed could lower interest rates further to help the economy, but that would also push upward on inflation.
On Wall Street, Darden Restaurants climbed 5.4% after reporting profit for the latest quarter that matched analysts鈥� expectations. That was despite what the company behind Olive Garden, Ruth鈥檚 Chris Steak House and other restaurant chains called 鈥渁 challenging environment.鈥�
Discount retailer Five Below rose 2.5% after reporting quarterly revenue and profit that topped analysts' expectations. The Philadelphia company also issued strong sales guidance and said it expects to open 150 stores this year.
In stock markets abroad, London鈥檚 FTSE 100 fell 0.1% after the .
Indexes fell more sharply across much of the rest of Europe, and German stocks in the DAX lost 1.2%. The loss was even worse in Hong Kong, where the Hang Seng index fell 2.2% following heavy pressure on tech-related stocks.
In the bond market, the yield on the 10-year Treasury fell to 4.23% from 4.25% late Wednesday.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
Stan Choe, The Associated Press
