US stocks slip lower in wobbly trading, but losses ease

NEW YORK (AP) — U.S. stocks are sinking again a day after their biggest drop since February. Some early relief over a tame report on inflation gave way to renewed selling.

Banks and health care companies are taking some of the worst losses. Bond yields, which have spiked over the last week, slid after the Labor Department said consumer prices grew only slightly in September. That’s a sign inflation remains under control and it suggests the Federal Reserve won’t have to raise interest rates at a faster pace. Investors also appear to be more willing to buy bonds because yields are higher than they have been in years.

The market’s recent decline was set off by a sharp drop in bond prices and a corresponding increase in yields last week and early this week. And there are lingering concerns about the unresolved trade dispute between the U.S. and China. Strong earnings reports in the upcoming weeks could soothe investor nerves, but any negative comments from company executives about future profits could have the opposite effect.

The benchmark S&P 500 index skidded 31 points, or 1.1 percent, to 2,753 at 11:20 a.m. Thursday after it fell 3.3 percent Wednesday, and the Dow Jones Industrial Average lost another 280 points, or 1.1 percent, to 25,317 after an 831 point plunge.

Wednesday’s tumble

Dow drops 831 points as investors fear rising rates

The Nasdaq composite fell 54 points, or 0.7 percent, to 7,367 after a 4.1 percent dive that was its biggest one-day loss in two years. The Russell 2000 index of smaller-company stocks shed 11 points, or 0.7 percent, to 1,563.

Stocks in Asia and Europe suffered even steeper losses.

France’s CAC 40 dropped 1.8 percent and the DAX in Germany lost 1.5 percent. Britain’s FTSE

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