The main indices of Wall Street fell on Thursday after data showed strong service sector activity in the world’s largest economy, while investors were cautious about any escalation of the conflict in the Middle East.
The benchmark S&P 500 index trimmed losses after The survey by the Institute of Supply Management (ISM) showed that the activity of the service sectorwhich makes up the bulk of the U.S. economy, stood at 54.9 in September, versus an estimate of 51.7, according to economists polled by Reuters.
However, other data showed that Weekly jobless claims increased slightly last week. Nonfarm payrolls for September will be released on Friday.
The odds of a 25 basis point cut at the Federal Reserve’s November meeting now stand at 64.9%, up from 50.7% a week ago.according to CME Group’s FedWatch tool.
Thus, the Industrial Average Dow Jones fell 225.04 points, or 0.5%, to 41,971.48 units, the S&P 500 index lost 14.86 points, or 0.23%, to 5,694.68 units, while the Nasdaq It fell 29.94 points, or 0.2%, to 17,895.19 units.
Eight of the 11 S&P 500 sectors opened lower. However, Infotech stocks rose the most, up 1.3%. Rate-sensitive heavyweights were mixed, with Amazon.com down 0.8%, Apple down 0.1%, while Nvidia rose 4.5%.
Two- and 10-year Treasury yields rose slightly, trading at 3.68% and 3.8%, respectively.
Investors have been cautious over the past two sessions as they contemplate the magnitude of Israel and the United States’ response to Iran’s recent attack on Israel. The CBOE Volatility Index, Wall Street’s fear gauge, hovered around more than three-week highs of 19.22.
Investors will also evaluate comments from Federal Reserve policymakers Raphael Bostic and Neel Kashkari later in the day.
US stocks have risen for much of the year, with the benchmark S&P 500 index confirming a bullish rally and posting profits in eight of the previous nine months due to expectations of lower borrowing costs. Technology stocks led the rise, as the integration of artificial intelligence is expected to boost their profits.
Meanwhile, a workers’ strike on the East and Gulf coasts entered its third day. Morgan Stanley economists noted that a prolonged shutdown could raise consumer prices, with food prices likely to react first.
Among other values, Chevron and Exxon Mobil rose after four sessions of gains, as crude oil prices rose more than 2%.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
