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Markets Right Now: An early rally evaporates on Wall Street

Apr 5, 2017 | 7:45 AM

The latest on developments in financial markets (All times local):

4:00 p.m.

Stocks gave up an early gain and ended lower on Wall Street after the Federal Reserve indicated it could start reducing its bond holdings.

Banks led the declines Wednesday. JPMorgan Chase lost 1.3 per cent.

The market had been broadly higher most of the day but started to turn lower after minutes released from the Fed’s last policy meeting indicated the central bank might start trimming its balance sheet later in the year.

The Fed bought large amounts of bonds during the financial crisis to stimulate the economy.

The Standard & Poor’s 500 index lost 7 points, or 0.3 per cent, to 2,352. It was up 18 points earlier.

The Dow Jones industrial average lost 41 points, or 0.2 per cent, to 20,648. The Nasdaq fell 34 points, or 0.6 per cent, to 5,864.

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3:45 p.m.

An early rally is evaporating as U.S. stocks surrender their gains while banks plunge along with bond yields and interest rates.

The sell-off began late Wednesday after the Federal Reserve suggested it might start trimming its balance sheet later in the year.

The yield on the 10-year Treasury note fell to 2.33 per cent, down from 2.38 per cent shortly before the minutes were released.

That helped send banks lower. JPMorgan Chase lost 1 per cent.

The Standard & Poor’s 500 index fell 4 points, or 0.2 per cent, to 2,356. It was up 18 points earlier.

The Dow Jones industrial average lost 29 points, or 0.1 per cent, to 20,661. The Nasdaq composite fell 30 points, or 0.5 per cent, to 5,868.

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Stocks are solidly higher in midday trading, led by gains in industrial companies and retailers.

Investors were encouraged Wednesday by a survey of private businesses showed that hiring was very strong last month.

Panera Bread soared 13.8 per cent after the sandwich and soup chain agreed to be bought by European conglomerate JAB for more than $7 billion.

The Standard & Poor’s 500 index rose 12 points, or 0.5 per cent, to 2,372.

The Dow Jones industrial average gained 132 points, or 0.6 per cent, to 20,821. The Nasdaq composite increased 24 points, or 0.4 per cent, to 5,922.

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11:45 a.m.

Stocks are solidly higher in midday trading, led by gains in industrial companies and retailers.

Investors were encouraged Wednesday by a survey of private businesses showed that hiring was very strong last month.

Panera Bread soared 13.8 per cent after the sandwich and soup chain agreed to be bought by European conglomerate JAB for more than $7 billion.

The Standard & Poor’s 500 index rose 12 points, or 0.5 per cent, to 2,372.

The Dow Jones industrial average gained 132 points, or 0.6 per cent, to 20,821. The Nasdaq composite increased 24 points, or 0.4 per cent, to 5,922.

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9:35 a.m.

Stocks are opening broadly higher on Wall Street, led by gains in banks and energy companies.

Investors were encouraged Wednesday by a report that private employers stepped up hiring in the U.S. last month.

Panera Bread jumped 13.6 per cent after the company agreed to be acquired by JAB Holdings, which also owns Peet’s Coffee & Tea and Krispy Kreme Doughnuts.

The Standard & Poor’s 500 index rose 6 points, or 0.3 per cent, to 2,366.

The Dow Jones industrial average gained 77 points, or 0.4 per cent, to 20,771. The Nasdaq composite increased 13 points, or 0.2 per cent, to 5,912.

Bond prices fell slightly. The yield on the 10-year Treasury note rose to 2.37 per cent.

The Associated Press