Stock Market Today: Stocks Slump On Interest Rate Worries

The market was positive in early trading Thursday, helped by a slate of positive corporate news from the likes of Walt Disney (DIS), Telsa (TSLA) and AstraZeneca (AZN). But the major benchmarks lost ground once again as worries about rising interest rates more than offset upbeat developments from some of the market's biggest and best-known names.

On Thursday it was Federal Reserve Bank of Richmond President Thomas Barkin's turn to throw water on any hopes for a more dovish turn in monetary policy. The Fed official reiterated in an interview the importance "staying the course" in order to return inflation to the central bank's 2% target. 

With anxiety rising about the possibility of a Fed-induced recession, stocks reversed course even as a number of companies reported upbeat news.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Save up to 74%

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

Sign up

Dow component Walt Disney beat Wall Street's earnings estimates and said it would cut costs dramatically. The company announced a plan to eliminate about 7,000 jobs, ending its fight with activist investor Nelson Peltz's Trian Partners. Additionally, Disney CEO Bob Iger said he would ask the board to reinstate the dividend, which was suspended in early 2020 because of the COVID-19 pandemic. 

Shares in Disney gained more than 5% at one point in early trades, but faded late in the session to finish down 1.3%.

Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.

Elsewhere, Tesla (+3.0%) caught a bid after CEO Elon Musk said the electric-vehicle company's "Master Plan 3" would be unveiled at the company’s annual meeting on March 1. Pharmaceutical giant AstraZeneca (+4.8%) did its part to help lift traders' spirits by offering a strong 2023 fiscal outlook.

By the closing bell, however, the Dow Jones Industrial Average fell 0.7% to 33,699, while the broader S&P 500 declined 0.9% to 4,081. The tech-heavy Nasdaq Composite lost 1.0% to finish at 11,789.

Stocks With the Highest Yields in the S&P 500 

Blue-chip dividend stocks never go out of style – at least not for patient investors. After all, the best Dow dividend stocks have a habit of outperforming the broader market when it's in a funk. The best dividend stocks for long-term dividend growth have likewise worked well during the current bear market.

But equity investors with shorter horizons probably want names with higher dividend yields. That's where the stocks with the highest yields in the S&P 500 come in. These names boast yields of more than 6% to greater than 11% – and have the imprimatur of the main U.S. equity benchmark to boot.