US stock indexes fell for a fifth straight session on Thursday as fresh signs of a tight labor market bet in favor of the Federal Reserve’s aggressive outlook, lifting bond yields and putting pressure on growth stocks.
Weekly jobless claims fell more than expected last week and layoffs declined in August, in line with strong demand for workers. Investors now await Friday’s monthly non-farm payrolls report for more evidence on the labor market.
As the 10-year Treasury yield hit its highest level since June 21, heavyweight technology and growth stocks such as Apple Inc, Amazon.com, Tesla Inc and Microsoft Corp fell between 0.3% and 1.8%.
Traders raise their expectations by 75 basis points for the third time in a row hike in rates Despite mixed cues on inflation, it rose to 74 per cent from 77.1% in September.
The latest data shows price pressures eased further, while manufacturing picked up sharply in August, driven by improvements in employment and new orders.
Robert Pavlik said, “The market has its dead eyes on a re-test of June lows. We’ll see how it fares after Friday’s non-farm payrolls report and things back to full week after Labor Day.” How do you go?” Senior Portfolio Manager at Dakota Wealth Management.
“Powell’s comments brought the realism back to the market … those gained since the jump from the lows in June are quickly going sideways.”
The benchmark S&P 500 is down 9.6% since hitting a four-month high augustWith much of the damage stemming from Fed Chair Jerome Powell’s harsh outlook on interest rate hikes.
With investors worried about how much and how long the Fed will raise rates, Wall Street’s main indices posted their weakest August performance in seven years in the last session.
At 10:17 am, the Dow Jones Industrial Average was down 269.08 points, or 0.85%, at 31,241.35, the S&P 500 was down 44.41 points, or 1.12%, at 3,910.59 and the Nasdaq Composite was down 188.01 points, or 1.59. %, at 11,628.20.
Boeing Co fell 4.6% as the aircraft maker expects its 737 MAX 10 jet to be certified by US regulators next year and the MAX 7 version to be certified by the end of 2022.
Nvidia Corp fell 8.8% after US officials told chip designers to stop exporting two top computing chips for artificial intelligence work to China.
Advanced Micro Devices Inc fell 5.5% after it was asked to stop exporting its top artificial intelligence chip to China.
Qualcomm Inc slipped 4.5% after UK-based chip firm Arm sued chip maker and recently acquired chip design firm Nuvia Inc for breach of license agreements and trademark infringement.
Hormel Foods Corporation fell 6.1% when the packaged food maker cut its full-year profit forecast.
There has been an increase in the number of issues declining to an 8.22-to-1 ratio on the NYSE and to a 4.93-to-1 ratio on the Nasdaq.
The S&P index recorded a new 52-week high and 30 new lows, while the Nasdaq recorded nine new highs and 235 new lows.
This story has been published without modification in text from a wire agency feed.
catch all business News, market news, today’s fresh news events and breaking news Updates on Live Mint. download mint news app To get daily market updates.