Dow Drops 266 Points as Markets Pull Back

Stocks faded in the last hour of trading and ended mostly lower Wednesday, a day after the S&P 500 and the Dow Jones Industrial Average set their latest record highs. Several big technology companies posted solid gains, led by Microsoft, which reported a 24% surge in profits last quarter as its cloud computing business bounded ahead. Encouraging earnings helped lift several companies, including McDonald’s. The yield on the 10-year Treasury fell to 1.53%. The S&P 500 fell 23.11 points, or 0.5%, to 4,551.68. The Dow Jones Industrial Average fell 266.19 points, or 0.7%, to 35,490.69. The Nasdaq rose 0.12 points, or less than 0.1%, to 15,235.84. The Russell 2000 index of smaller companies fell 43.58 points, or 1.9%, to 2,252.49.

The S&P 500 had more losers than gainers, but several big technology and communications companies gained ground and helped counter losses elsewhere, the AP reports. Microsoft rose 4.2%. Chipmaker Advanced Micro Devices also reported encouraging earnings, which initially sent its stock price higher, though it closed down 0.5%. Google's parent company, Alphabet, rose 5%, within striking distance of an all-time high, as a continued rebound in digital ad spending bolstered surprisingly good financial results. US crude oil prices fell 2.4% and pushed energy stocks lower. Exxon Mobil fell 2.6%.

Fashion rental pioneer Rent the Runway was down 9.1% in its stock market debut after an early rally faded. The New York-based company’s offering priced at $21 and was trading at $19 a share. Investors are busy reviewing the latest round of earnings from a variety of well-known companies. McDonalds rose 2.7% after reporting solid financial results as an easing of business restrictions helped sales growth. Coca-Cola rose 1.9% as sales grew along with the reopening of many venues and businesses over the summer. General Motors fell 5.4% after reporting mixed financial results as the broader auto industry continues to face production problems because of a chip shortage. Rival Ford will report its results later Wednesday.

(More stock market stories.)