Major indexes across the ocean fell in choppy trading on Thursday, as investors were weighed down by economic data that painted a bleak picture of the US economy, reports CNBC.
The technological indicator Nasdaq Composite shed 1.43% to end the day at 11,552.36 points, while the broad gauge S&P 500 is down 1.13% to 3901.35 points. The Blue Chip Index Dow Jones Industrial Average was the best performer, but still fell 173.27 points to 30,961.82 points and ended the session at its lowest level since July 14.
The book of Adobe weighed on the Nasdaq and S&P 500 after falling more than 16%. This happened after the company announced $20 billion deal for the acquisition of Figma. Adobe’s weak performance spread to other technology stocks – shares of Apple became cheaper by 1.9%, and those of Salesforce wrote off 3.4% of their value.
Bank stocks were a bright light, as Goldman Sachs and JPMorgan registered a growth of more than 1% for the day. The share price of UnitedHealth Group rose by 2.6%.
Wall Street is trying to stabilize after a surprise rise in the consumer price index in August sent the Dow down more than 1,200 points on Tuesday. Wednesday’s weak gains were erased by Thursday’s declines.
Mixed economic data today did little to boost investor sentiment. First-time applicants applications for unemployment benefits were less than expected, but import prices fell less than expected. Retail sales beat expectations but fell after excluding cars. A decline in industrial production is also an indicator of a slowing economy.
While these data indicate that the US consumer goods sector is still robust, they will not reduce concerns about continued inflation. Investors fear the Federal Reserve will be more aggressive in raising interest rates, which could increase the likelihood of a recession.
The data released today did not change expectations for the Fed’s behavior. Financial markets are all but certain of a rate hike of at least 75 basis points next Wednesday and give a one-in-five chance of an even bigger 100 basis point hike, CME’s FedWatch tool says.
US railroads remained open after the Biden administration helped broker a shaky deal with unions to avoid a strike. Any rail closures would have increased pressure on the supply chains that underpin high inflation.
The railway operators’ book Union Pacific and Norfolk Southern outperformed the broader market.
In the bond markets, the yield on The 10 year olds and on 30-year US Treasuries rose to 3.451% and 3.472% respectively.
In the currency markets the dollar indexwhich tracks the U.S. dollar’s performance against a basket of six other major currencies, was up 0.05 percent at 109.71. The euro rose 0.18% to $1, a the pound was down 0.59% at $1.147. Towards the yen The U.S. dollar rose 0.23 percent to 143.48 yen per dollar
In commodity markets, oil fell more than 2 percent as expectations of weaker demand and a strong dollar ahead of a potentially big rate hike outweighed supply concerns.
Futures on the international benchmark Brent lost 3.46% of its value and ended the day at $90.84. US light crude oil contracts WTI were down $3.38 to $85.10 a barrel.
US futures on the gold fell 2.1% to trade at $1,672.6 a troy ounce.