Stocks close lower as investors await September jobs report, Dow drops nearly 350 points; European stocks close lower as markets fail to regain positive momentum
U.S. stocks fell Thursday, as traders weighed sharp swings in stocks and rates to start the month. The Dow Jones Industrial Average fell 346.93 points, or 1.15%, to 29,926.94. The S&P 500 lost 1.02% to 3,744.52, while the Nasdaq Composite dropped 0.68% to 11,073.31. The three stock benchmarks opened the session lower. All of the major averages are on pace to end the week more than 4% higher for their best week since June 24.
Investors are anxiously awaiting the Friday jobs report, which will show how the labor market fared in September, giving the central bank another piece of information about its rate-hike campaign. Economists polled by Dow Jones expect the report will show that payrolls increased by 275,000 and that the unemployment rate remained at 3.7%. A surprise to the upside could raise concerns that the Federal Reserve will take a tougher line on inflation.
Cannabis stocks surged in afternoon trading after the White House announced that President Joe Biden will pardon all federal offenses of simple marijuana possession. Shares of Tilray Brands gained 21%, while Canopy Growth jumped more than 11%. Both stocks still trade under $4 per share, so the moves are still small in dollar terms. Stocks with low prices can be more volatile than larger and more established equities.
The pan-European Stoxx 600 provisionally ended the session down 0.5%, having given back earlier gains of more than 0.8%. All major bourses and the majority of stocks finished the day in the red, with utility stocks leading the losses, down 1.9%.
Energy giant Shell fell 3% in early trading after saying its third-quarter profits would be “significantly” lower. It reported record profits in the first half as energy prices soared, but said it had seen a sharp drop in refining margins and weaker earnings from natural gas trading.
Source: CNBC, Investing.com