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Dow Jones Industrial Average fell Thursday even as second-quarter earnings results continued to beat expectations.

The Dow shed about 100 points. The S&P 500 lost around 0.2%. The Nasdaq Composite dipped about 0.2%.

The slight pullback came with all major stock benchmarks about 1% or less from record highs. The S&P 500 is already up 16% this year in anticipation of a big profit comeback.

“The market did as well as it did in the past year because it was in anticipation of the improvement in earnings that we’re seeing right now,” Liz Ann Sonders, chief investment strategist at Charles Schwab, said. “A lot of news has been priced in.”

Shares of Morgan Stanley dipped in early morning trading evenafter the company’s second-quarter earnings report Thursday morning topped analysts’ expectationswith strong equities trading and investment banking results. Morgan Stanley were up 35% this year into the results and the stock may be reacting more to the outlook for yields than its actual results.

Initial jobless claimsfor the week ending July 10 totaled 360,000, a new pandemic-era low, as expected by economists.

Investors also await a Congressional testimony from Federal Reserve Chair Jerome Powell set for 9:30 a.m. ET.

A rollover in bond yields raised questions about the global economic recovery as variants of Covid-19 spread. The10-year Treasury yieldshed 3 basis points to 1.326%. It ended June at 1.45% and was above 1.70% back in March. Chinaalso reported GDP overnightthat was less than expected.

The move lower in yields dampened enthusiasm for the cyclical trade in the premarket with shares of Caterpillar, General Electric and Boeing lower. Cyclical stocks are those closely linked to a recovering economy.

Bank shares, including Wells Fargo and Bank of America, were lower in premarket, despite posting better-than-expected results earlier in the week, as the falling yields pinch their profitability.

Delta shares bucked the trend, however, gaining in premarket tradingafter an upgrade from Raymond James.

Netflix shares also rose premarket trading, gaining 2% afterit hired a veteran video-game executiveas it pushes deeper into gaming. Other large tech shares were higher in premarket trading, continuing a trend this week. Apple and Alphabet gained in premarket trading.

OnWednesday, the Dow rose 44 points, helped by a 2.4% gain in Apple’s stock. The S&P 500 climbed 0.12% after hitting an intraday record earlier in the session. The Nasdaq Composite was the relative underperformer, dipping 0.2%. However, the Nasdaq 100 closed at an all-time high.

The small-cap benchmark Russell 2000 lost 1.7% on Thursday, bringing its week-to-date losses to more than 3.4%.

Fed Chair Powell — in testimony to the House Committee on Financial Services —quelled investors’ fearsabout a rollback of the central bank’s easy policies anytime soon, even in the face of inflation. The producer prices from June showed higher than expected inflation on Thursday.

“Fed chair Powell helped calm fears by again suggesting these bad inflation reports were merely transitory,” said Jim Paulsen, chief investment strategist at the Leuthold Group, noting the drop in bond yields following the hot inflation report. “Evidently, bond investors are buying the Fed’s inflation narrative.”