US stocks fell on Thursday, as traders weighed the sharp fluctuations in stocks and rates as the month began.
The Dow Jones Industrial Average fell 346.93 points, or 1.15 percent, to 29,926.94 points. The S&P 500 lost 1.02% to 3744.52, while the Nasdaq Composite fell 0.68% to 11073.31. The three stock indices opened the session lower. All major averages are on track to finish the week up more than 4% in their best week since June 24.
The energy sector was the best performer, up 1.8%. Utilities slowed, down 3.3%.
The benchmark 10-year interest rate is over 3.8%. The two-year yield, most sensitive to monetary policy changes, exceeded 4.2%.
Investors are eagerly awaiting Friday’s jobs report, which will show how the labor market performed in September, giving the central bank another piece of information about its rate hike campaign. Economists polled by Dow Jones We expect the report to come out That jobs increased by 275K and the unemployment rate remained at 3.7%. An upside surprise may raise concerns that the Federal Reserve will take a tougher stance on inflation.
On Wednesday, data from the ADP showed that the labor market remained strong among private companies in September, when companies added 208,000 jobs, topping Wall Street estimates. But on Thursday, jobless claims were higher than expected, indicating that there may be some weakness in the labor market.
“Once again, investors are looking for bad news to be good news,” Chris Senek of Wolf Research wrote in a note Thursday, adding that even if the September report was less than expected, wage growth is likely to hold and turn into a pivotal point from the Federal Reserve. .
“While stocks are currently vulnerable to significant declines to the upside, we strongly believe that the medium-term bearish base case remains in place,” he added.
Wall Street started the week on a high, with the S&P 500 notching its biggest two-day rally since 2020. Stocks fought to keep the winning streak continuing on Wednesday but ultimately failed. The Dow closed down 42 points, or 0.14%. The S&P 500 and Nasdaq Composite were down 0.20% and 0.25%, respectively.
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