Wall Street Closes with Losses Amid Analysis of Labor and Inflation Data
U.S. stock averages pulled back after recent gains, with traders focusing on newly released economic data.
The three major Wall Street indices ended Thursday’s trading session in the red. The Dow Jones Industrial Average, comprising 30 major industrial companies, dropped 0.53% to 43,914.12 points. The SPX, which tracks 500 large-cap stocks, fell 0.54% to 6,051.25 points, while the tech-heavy Nasdaq slid 0.66% to 19,902.84.
New claims for unemployment benefits in the U.S. unexpectedly rose by 17,000 last week to 242,000, up from the prior figure of 225,000. This increase has heightened concerns about the labor market in the current high-interest-rate environment.
Additionally, the Producer Price Index (PPI) for November showed a 0.3% rise, exceeding the anticipated 0.02%. However, the moderation in service costs suggests continued progress in curbing inflation.
Investors are now looking ahead to the Federal Reserve’s meeting scheduled for Tuesday, December 17, and Wednesday, December 18. According to the Fed Watch tool, which tracks interest rate futures, there is a 94.7% probability of a rate cut by the central bank.
Among mega-cap growth stocks, performance was mixed. Nvidia shares fell 1.41% following a strong rally the previous day, while Microsoft (+0.13%) and Apple (+0.60%) posted modest gains.
Commodities Market
In the market of commodities, oil prices closed slightly lower on Thursday, as forecasts of abundant supply in the oil market offset optimism fueled by rising expectations of an interest rate cut in the United States.
Brent crude futures fell by 11 cents, or 0.15%, to $73.41 per barrel, while West Texas Intermediate (WTI) crude futures in the U.S. declined by 27 cents, or 0.38%, to $70.02 per barrel.
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