Stocks close lower on Thursday, Dow and S&P 500 notch third day of losses
Stocks fell Thursday as investors grew increasingly concerned the Federal Reserve will keep raising rates despite signs of slowing inflation. The Dow Jones Industrial Average lost 252.40 points, or 0.76%, to 33,044.56, posting its third down day in a row and giving up its gains from the new year’s rally. The 30-stock index is now down 0.31% in 2023.
Meanwhile, the S&P 500 fell 0.76% to 3,898.85, and the Nasdaq Composite shed 0.96% to end the session at 10,852.27. Both indexes are still positive for the year.
Stocks extended their slide on Thursday after initial filings for unemployment insurance fell to their lowest level since September, the Labor Department reported, signaling to investors that the labor market is resilient amid a slowing economy.
Claims totaled a seasonally adjusted 190,000 for the week ending Jan. 14, a decline of 15,000 from the previous period. Economists surveyed by Dow Jones had been looking for 215,000.
Investors have been parsing other recent economic data and Fed remarks for clues on how high rates will go. But, while recent numbers point to easing inflation, JPMorgan Chase CEO Jamie Dimon thinks rates will top 5%.
The pan-European Stoxx 600 closed down 1.6%, with tech stocks shedding 2.9% to lead losses as all sectors and major bourses finished in the red.
Source: CNBC, Investing.com