US stocks fell again on Thursday after the dramatic two-day rally that quarter started erupted.
Investors now await the Labor Department’s September business reportShould be out Friday morning.
S&P 500 (^GSPC) Dow Jones Industrial Average (Dow Jones Industrial Average () closed up 1% after accelerating losses at the close.^ DJI) lost about 350 points or 1.15%. The tech-heavy Nasdaq Composite (^IXIC) was 0.7%. Meanwhile, in the bond market, Treasury yields rose further against the benchmark 10-year note.^TNX) above 3.8% and an interest-sensitive 2-year yield of 4.2%.
Investors weighed in on a series of hawkish statements from Federal Reserve officials on Thursday morning. Minneapolis Fed President Neel Kashkari acknowledged that there is a risk of overshooting as policy tightening still needs to work its way through the economy. However, he argued that he and his colleagues were “a long way off” from reducing inflation.
Echoing these views, Cleveland Fed President Loretta Mester said that the US is in an “unacceptably high” inflation environment.
In corporate news, Pinterest shares (PINS) bought back about 5% of Goldman Sachs over the next year Upgrade from Goldman Sachs. The investment bank said it believes in Pinterest’s ability to increase monetization and capture a larger share of ad budgets,” also pointing to a number of long-term secular growth themes.
Constellation Brands (STZ) shares Decreased by 1.5%, despite the increase in earnings Wall Street is speculating as the company says it is shedding some of its core and premium wine portfolio.
On the commodities front, US crude oil futures gained more than 10% this week following Wednesday’s OPEC+ confirmation. The heaviest production cuts since 2020 – 2 million barrels per day – after US officials tried to lobby against the move.
“These high oil prices certainly prevent gasoline prices from continuing their seasonal decline over the winter,” Andrew Lipow, president of Lipow Oil Associates, told Yahoo Finance Live on Wednesday. “The consumer at the gas pump will already see the impact over the next few weeks.”
Earlier in the day, Labor Department data showed an increase in the number of Americans who filed for unemployment insurance for the first time last week. Initial unemployment claims It rose sharply to 219,000 for the week ending in October. 1 After slipping to 193,000, the previous week’s lowest since April. Economists had estimated 203,000 claims, according to consensus estimates compiled by Bloomberg.
Other recent economic data showing a larger-than-expected decline in jobs and a sharp cooling in manufacturing activity boosted optimism that the Federal Reserve could move into policy-tightening plans sooner than expected, but many on Wall Street are skeptical that the data will be enough of a modification. persuading officials to reduce interest rate hikes.
Investors on Tuesday cheered the Labor Department’s Job Openings and Labor Turnover Survey (JOLTS), which showed job vacancies fell by 1.1 million to 10.1 million on the final business day in August. However, ADP private employment report The U.S. economy added 208,000 jobs in September, more than expected, and labor market data continued a trend of positive surprises.
“Ahead of this Friday’s non-farm payrolls (NFP) and next Wednesday’s CPI, the market was oscillating between a ‘hawkish Fed’ and a ‘Fed pivot’ story,” JPMorgan analysts said in a note on Thursday. , including the ADP jobs reading, “proving that the economy is still strong and therefore dampening hopes for a near-term U-turn from the Fed.”
The most important release for investors will be the Labor Department’s September jobs report at 8:30 a.m. on Friday. Economists expect nonfarm payrolls to have increased by 260,000 last month, according to the latest Bloomberg estimates.
JPMorgan noted that “equity bulls will need about 100,000 prints to see the market change Fed expectations.”
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Alexandra Semenova is a correspondent for Yahoo Finance. Follow him on Twitter @alexandraandnyc
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