Stock market today: Wall Street drifts around its record heights in early trading

NEW YORK (AP) — Wall Street is drifting near its record highs amid mixed trading for U.S. stocks on Friday.

The S&P 500 was 0.1% higher in early trading after setting an all-time high the day before. The Dow Jones Industrial Average was down 48 points, or 0.1%, as of 9:40 a.m. Eastern time, and the Nasdaq composite was 0.2% higher a day after surpassing its prior record set in 2021.

The bond market was also calm, with Treasury yields relatively steady. They’re on track to close the week relatively little changed after a report earlier in the week said a key measure of inflation that the Federal Reserve tracks closely behaved pretty much as expected last month.

Dell Technologies was helping to support the market after jumping 29.1%. It reported stronger profit and revenue for the latest quarter than analysts expected, highlighting demand for its AI-optimized servers.

A seemingly never-ending crescendo of demand for artificial-intelligence technology has helped catapult stocks higher over the last year. Even Dell’s 140% jump over the last 12 months pales compared with the 240% surge for Nvidia.

NetApp leaped 23.8% after reporting stronger results than expected, saying it’s seeing “good momentum in AI.” The data company also gave a forecasted range for profit in the current quarter that topped what several analysts were expecting.

The mood was much more dour in the banking industry, where New York Community Bancorp tumbled 30.1%. It warned investors late Thursday that it found weakness in how it internally reviews loans, caused by ineffective oversight, risk assessment and monitoring activities.

The company said it won’t be able to file its annual report in time, and it took a charge that added $2.4 billion in losses to its results for the last three months of 2023. Its CEO stepped down after 27 years with the company, effective immediately.

Much attention has been on smaller regional banks after last year’s crisis in the industry gave way to several bank collapses. One of them, Signature Bank, was swallowed up by NYCB, which has caused the resulting bank to face stricter oversight amid struggles for loans tied to real estate.

While NYCB faces many issues that are specific to it, the worry has been that banks across the industry face challenges from loans made for real-estate projects.

Interest rates are high after the Federal Reserve hiked its main rate to the highest level since 2001, which can add pressure on the financial system. The hope has been that the Fed will cut interest rates several times this year to relieve some of that pressure.

The Fed has indicated it may do so if inflation continues to cool decisively toward its 2% target. But a string of stronger reports on the economy than expected have forced traders on Wall Street to push back their forecasts for when the cuts could begin. The hope now is that it could start in June after Wall Street had earlier circled March on the calendar.

In the bond market, the yield on the 10-year Treasury edged up to 4.27% from 4.25% late Thursday.

In stock markets abroad, Japan’s Nikkei 225 jumped 1.9%. Its unemployment rate dropped to 2.4% in January, though a measure of manufacturing activity showed a contraction.

Indexes were up more modestly across the rest of Asia and Europe.

AP Writers Matt Ott and Zimo Zhong contributed.