The three main indices were on pace for their worst August performance since 2015, with the tech-heavy Nasdaq down 3.9% after Fed Chair Jerome. PowellThe sharp and scathing remarks on Friday about keeping monetary policy tight “for the time being” dashed hopes of more modest rate hikes.
Meanwhile, easing price pressure from mixed economic data and a sign of a tight labor market weighed on investors’ minds in September, which is generally a weak month for stock market returns.
Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, said in a note, “Markets are facing that the Federal Reserve either needs to raise interest rates too rapidly, or inflation begins to decline too rapidly. Will go.”
“We don’t believe the bottom is for stocks … While many investors are refocusing on mid-June lows, we believe the market has the potential to fall below that range. “
Data earlier in the day showed the ADP’s private payrolls grew by 132,000 jobs in August, lower than economists’ estimates of 288,000 job growth, according to a Reuters poll.
This came ahead of more comprehensive and closely watched jobs data on Friday, which is expected to show a 300,000 increase in non-farm payrolls last month after registering an increase of 528,000 in July.
“At this point, any softening in the labor market, housing data is something the market will embrace because of the implications for the Fed,” said Ross Mayfield, investment strategy analyst at Baird in Louisville, Kentucky.
“Markets are finding a level right now, we’ll have to wait for the next inflation and non-farm payroll print to get a better understanding.”
The benchmark S&P 500 is up 9.7% from its mid-June low, but remains in a bear market after falling earlier this year.
At 12:12 p.m. ET, the Dow Jones Industrial Average was down 20.43 points, or 0.06%, at 31,770.44, the S&P 500 was up 2.26 points, or 0.06%, at 3,988.42, and the Nasdaq Composite was up 17.32 points, or 0.15. %, at 11,900.46.
Seagate Technology Holdings said it had lowered its first-quarter earnings expectations, citing macroeconomic concerns that are forcing cloud companies and PC makers to cut inventory levels. The latter recorded a decline of 1.1%.
Shares of Seagate fell 2.9%, while HP Inc. declined 6.1% after forecasting a decline in quarterly and full-year profits on slowing PC sales.
Snap Inc. increased by 7.2% after saying it would cut 20% of staff, restructure its ad sales unit and wind up some projects to focus on improving sales and numbers of Snapchat users.
Shares of other social media companies Pinterest and Meta Platforms rose 3.9% and 4.4%, respectively.
Netflix Inc. gained 2.9% after hiring two top Snap Inc. executives to help the streaming giant with its ad-supported tier plan.
Chewy Inc slipped 9% after the online pet supply retailer cut its full-year 2022 sales outlook, while PVH Corp fell 9.7% as the owner of Calvin Klein slashed its 2022 profit outlook.
Bed Bath & Beyond Inc. fell 20.8% after saying it would close 150 stores, cut jobs and change it in an effort to revamp its sales strategy. money loss Business.
There has been an increase in the number of issues declining to a 1.10-to-1 ratio on the NYSE and to a 1.01-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week highs and nine new lows, while the Nasdaq posted 11 new highs and 132 new lows.
This story has been published without modification in text from a wire agency feed. Only the title has been changed.
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