WALL Street stocks tumbled on Thursday (Jul 27) on resurgent concerns about higher interest rates, snapping a 13-day winning streak for the Dow.

The blue-chip index appeared poised to tie the all-time streak set in 1897. But after rising early in the day, equities headed lower in the afternoon as worries about more aggressive Federal Reserve actions took hold.

The catalyst was a rise in Treasury bond yields after US second-quarter gross domestic product growth exceeded expectations.

The Dow Jones Industrial Average, which had tied a 13-day streak last seen in 1987, finished down 0.7 per cent at 35,282.72.

The broad-based S&P 500 shed 0.6 per cent to 4,537.48, while the tech-rich Nasdaq Composite Index lost 0.6 per cent at 14,050.11.

FHN Financial’s Chris Low said the jump in the yield on the 10-year US Treasury note above four per cent reflected a rethink of Fed chair Jerome Powell’s commentary on Wednesday, when the US central bank lifted rates and kept alive the possibility of more hikes.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

The market now thinks “the Fed funds interest rates are going to be higher for longer”, Low said.

Earlier Thursday, the European Central Bank lifted a key interest rate to its highest level since early 2001 while opening the door to pausing its aggressive rate hiking campaign.

Among individual companies, Meta rose 4.4 per cent as it topped expectations with quarterly earnings of US$7.8 billion, powered by a reviving digital ad business.

Others that rose after reports included Comcast, McDonald’s and Royal Caribbean Cruises.

But Southwest Airlines plunged 8.9 per cent on concerns about a 12 per cent jump in operating expenses, as the carrier forecast more spending in the fourth quarter.

Others that fell after earnings were Honeywell International, Chipotle Mexican Grill and Mastercard. AFP