Wall Street edged lower Wednesday following a rally that had sent it roaring 16% higher for the year so far.
The S&P 500 fell 8.77 points, or 0.2%, to 4,446.82 to drift lower from its highest level since April 2022. The Dow Jones Industrial Average dropped 129.83, or 0.4%, to 34,288.64, and the Nasdaq composite lost 25.12, or 0.2%, to 13,791.65.
Other markets around the world fell more sharply following the latest discouraging signal from China’s economy. Growth in China’s services industry slowed by more than economists expected last month. It’s the latest evidence showing the world’s second-largest economy is stumbling in its recovery following the removal of anti-COVID restrictions.
The U.S. economy, meanwhile, has remained stronger than many investors feared. It’s defied predictions for a recession because of a job market that’s remained remarkably solid despite much higher interest rates meant to bring down inflation.
A report on Wednesday showed growth for U.S. factory orders held steady in May, though economists expected to see an acceleration.