The Industrial Average Dow Jones went down a 0.6%, to 34,395.01 units; Meanwhile he S&P500 gave up a 0.1%, to 4,076.57 units. The Nasdaq Composite lost a 0.1%to 11,482.45 units.
US manufacturing activity contracted for the first time in two and a half years in November, as higher borrowing costs weighed on demand for goods and proved a trigger for investors to take profits after a rally in the previous session.
“Yesterday’s move was so crazy that it’s probably just natural profit taking,” said Rusty Vanneman, chief investment strategist at Orion Advisor Solutions. The Chairman of the Federal Reserve, Jerome Powell, said on Wednesday it was time to rein in upcoming interest rate hikes, signaling a protracted economic tightening amid soaring borrowing costs, pushing the S&P 500 Index above its 200-day moving average for the first time. time since April.
Markets were boosted earlier in the day by a reading from the Commerce Department, which showed that Consumer spending, which accounts for more than two-thirds of US economic activity, rose 0.8% after unrevised growth of 0.6% in September
The biggest drag on the Dow Jones Industrial Average was Salesforce Inc., which sank 8.3% after the software maker said that Bret Taylor would step down as co-CEO in January.
Investors now await the Nonfarm Payrolls data on Friday. Separately, a report from the Labor Department on Thursday showed initial claims for state unemployment benefits fell by 16,000 to 225,000 seasonally adjusted for the week ending November 26.
Most mega-cap growth stocks, such as Alphabet Inc., Apple Inc, Microsoft Corp and Tesla Inc. were all down between 0.3% and 1.5% as Treasury yields rose after an initial decline.
Source: Ambito
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