Wall Street experienced a third straight loss, with the S&P 500 falling 0.5% and the Dow Jones Industrial Average dropping 0.4%. Reports showed the U.S. economy may be stronger than expected, potentially reducing the likelihood of future interest rate cuts by the Federal Reserve.

The Fed recently made its first rate cut of the year and hinted at more to come. An unexpectedly strong economy could delay these cuts, risking worsening inflation. Wall Street hopes for a delicate balance that prompts rate cuts without leading to a recession.

Treasury yields rose as traders adjusted their expectations for future rate cuts by the Fed. Economic reports showed a decrease in unemployment benefit claims, faster economic growth, and strong demand for U.S. manufactured goods.

On Wall Street, CarMax and Jabil saw stock declines despite differing financial performance. Oracle, an AI winner, experienced a drop after a recent surge. Starbucks announced a restructuring plan, while IBM rose after a quantum computing trial with HSBC.

KB Home reported stronger profits, citing eased mortgage rates as a potential boost for the housing market. Overall, the S&P 500, Dow Jones Industrial Average, and Nasdaq composite all ended lower. International markets also saw dips in Europe after mixed movements in Asia.

Read more at Yahoo Finance: Wall Street stumbles again for a 3rd straight loss