NEW YORK: The S&P 500 dipped on Thursday as a raft of upbeat data fanned fears of rising inflation, eclipsing reports that President Joe Biden has offered to scrap his proposed corporate tax hike.
Major stock indexes pared losses, with the Dow rising 0.1% after reports of the major concession by the Democratic president. Biden's offer came amid talks with Republicans on an infrastructure package, a source familiar with the matter said.
Apple Inc, Amazon.com Inc, Microsoft Corp and Alphabet were among the biggest drags on the benchmark S&P 500 as the high-growth stocks, whose future cash flows are discounted when interest rates are higher, fell.
Banks and energy stocks, which track an improving economic outlook, added 0.7% and 0.5%.
At 12:04 p.m. ET, the Dow Jones Industrial Average was up 32.85 points, or 0.09%, at 34,633.23, the S&P 500 was down 9.44 points, or 0.22%, at 4,198.68, and the Nasdaq Composite was down 118.49 points, or 0.86%, at 13,637.84.
Shares of AMC Entertainment reversed their sharp gains to fall 22.7% after the company launched its second share issue in three days.
FireEye Inc dropped 15.4% after the cybersecurity firm said it would sell its products business, including the FireEye name, to a consortium led by private equity firm Symphony Technology Group for $1.2 billion in cash.
In a bright spot was General Motors Co, up 5.7%, as the carmaker expects first-half 2021 financial results to be significantly better than its forecast as semiconductor chip deliveries pick up in the second quarter. Rival Ford added 6.1%.