Stock market today: Wall Street's rally stalls as Nasdaq pulls back from its record

NEW YORK — U.S. stock indexes fell Thursday following some potentially discouraging data on the economy.

The S&P 500 slipped 0.5% for its fourth loss in the last six days. It's a pause for the index, which has been rallying toward one of its best years of the millennium.

The Dow Jones Industrial Average lost 234 points, or 0.5%, and the Nasdaq composite sank 0.7% from its record set the day before.

A report early in the morning said more U.S. workers applied for unemployment benefits last week than expected. A separate update, meanwhile, showed that inflation at the wholesale level, before it reaches U.S. consumers, was hotter last month than economists expected.

Neither report points to imminent disaster, but they dilute one of the hopes that's driven the S&P 500 to 57 all-time highs so far this year: Inflation is slowing enough to convince the Federal Reserve to keep cutting interest rates, while the economy is remaining solid enough to stay out of a recession.

Of the two reports, the weaker update on the job market may be the bigger deal for the market, according to Chris Larkin, managing director, trading and investing, at E-Trade from Morgan Stanley. A surge in egg prices may have been behind the worse-than-expected inflation numbers.

''One week doesn't negate what has been a relatively steady stream of solid labor market data, but the Fed is primed to be sensitive to any signs of a softening jobs picture,'' he said.

Lower rates would give a boost to the economy and to prices for investments, but they could also provide more fuel for inflation.

A cut next week would have the Fed following other central banks, which lowered rates on Thursday. The European Central Bank cut rates by a quarter of a percentage point, as many investors expected, and the Swiss National Bank cut its policy rate by a steeper half of a percentage point.

Following its decision, Switzerland's central bank pointed to uncertainty about how U.S. President-elect Donald Trump's victory will affect economic policies, as well as about where politics in Europe is heading.

Trump has talked up tariffs and other policies that could upend global trade. He rang the bell marking the start of trading at the New York Stock Exchange on Thursday to chants of ''USA.''

On Wall Street, Adobe fell 13.7% and was one of the heaviest weights on the market despite reporting stronger profit for the latest quarter than analysts expected. The company gave forecasts for profit and revenue in its upcoming fiscal year that fell a bit shy of analysts'.

Kroger rose 3.2% after saying it would get back to buying back its own stock now that its attempt to merge with Albertsons is off. Kroger's board approved a program to repurchase up to $7.5 billion of its stock, replacing an existing $1 billion authorization.

All told, the S&P 500 fell 32.94 points to 6,051.25. The Dow Jones Industrial Average dropped 234.55 to 43,914.12, and the Nasdaq composite sank 132.05 to 19,902.84.

In stock markets abroad, European indexes held relatively steady following the European Central Bank's cut to rates.

Asian markets were stronger. Indexes rose 1.2% in Hong Kong and 0.8% in Shanghai as leaders met in Beijing to set economic plans and targets for the coming year.

South Korea's Kospi rose 1.6% for its third straight gain of at least 1%, as it pulls back following last week's political turmoil where its president briefly declared martial law.

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