U.S. stocks fell on Thursday morning as bond yields rose and bitcoin rallied as investors scrutinized warmer-than-expected economic data and rhetoric from the Federal Reserve.
In the afternoon, the S&P 500 (^GSPC) and the Dow Jones Industrial Average (^DJI) fell 0.53%. The Nasdaq Technology Index ( ^IXIC ) fell 0.57%.
Bitcoin (BTC-USD) rose to a new six-month high as tough regulatory measures continue to shake up the cryptocurrency space. As of Thursday morning, the estimate is $25,000.
The yield on the 10-year US Treasury rose to 3.843% on Thursday morning. The dollar index rose by 0.1% to 104.03 dollars. Energy was little changed on Thursday morning, with WTI prices at $78.65 a barrel.
Investors took in new economic data on Thursday, led by January's producer price index (PPI). Wesen-PPI recorded a monthly gain of 0.7%, higher than the 0.4% expected by economists.
Also on the macro front, the number of Americans filing new job applications fell to 194,000 in the week ended Feb. 11, the Labor Department said on Thursday, below the 200,000 economists expected.
Cleveland Federal Reserve Bank President Loretta Mester also made headlines on Thursday when she said she was ready to raise interest rates by 0.50%, more than her peers voted for at the last monetary policy meeting.
Stocks rose on Wednesday as economic data continued to show the economy remains resilient to higher rates and flat inflation.
The Commerce Department said Wednesday that retail sales rose 3% in January, reversing two consecutive monthly declines. Coupled with higher-than-expected consumer prices on Tuesday, investors are concerned that the Federal Reserve may continue to raise interest rates, weighing on stocks this week.
"Strong job gains and changes in disposable income levels in the new year also contributed to an increase in spending in January," Bank of America economist Aditya Bhav wrote in a note after the statement.
JPMorgan economists raised their first-quarter GDP forecast to 2% from 1% on the news, noting that the acceleration in retail sales is contributing to "Goldilocks' vision of inflation-free growth."
Meanwhile, the Congressional Budget Office warned Wednesday that the Treasury Department's ability to continue paying the government's bills will be exhausted by the summer unless lawmakers reach a deal to raise the debt ceiling.
The Commerce Department said builders continued to slow homebuilding in January as the pace of homebuilding fell to 1.309 million for the year from 1.356 million. Building permits fell 0.1% to an annual rate of 1.34 million, below consensus expectations of 1.35 million.
wrote Robert Fricke, corporate economist at Navy Federal Credit Union. In a statement after the launch.
Separately, Redfin (RDFN), DoorDash (DASH) and Dropbox (DBX) are set to report quarterly results after hours on Thursday.
In separate stock moves, shares of Paramount ( PARA ) fell 6% Thursday morning after the media giant reported a loss in net income. Revenue was $8.13 billion, versus expectations of $8.17 billion. Subscriber growth also took a hit, coming in at 9.9 million in the quarter versus the 10 million analysts expected.
Shares of Shopify ( SHOP ) fell on Thursday after the e-commerce company reported fourth-quarter revenue of $1.73 billion, versus estimates of $1.65 billion. Adjusted earnings per share of $0.07 beat estimates of $0.02. The Ottawa-based company expects first-quarter revenue to come in slightly below expectations.
Shares of Roku ( ROKU ) rose Thursday morning after the company reported net income of $867.1 million, beating expectations of $804.5 million. The loss of $1.70 per share in the fourth quarter was slightly below analysts' expectations of $1.74.
Shares of Cisco ( CSCO ) rose 4% after the company raised its third-quarter revenue forecast to 11-13% more than a year ago, beating analysts' expectations.
Danny Romero, Yahoo Finance Correspondent. Follow him on Twitter @daniromerotv
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