The main Wall Street indices fall this Thursday, April 6, since the last labor market data they pointed to a slowdown in economic growth due to rapidly rising interest rates, with investors wary of risk and waiting for the monthly employment data to get a clearer picture of the economy.
The news Jobless claims fell to 228,000seasonally adjusted, for the week ending April 1, according to a report from work Departmentwhile economists 200,000 applications expected for the past week. The data from the previous week was revised and showed 48,000 more applications.
Main tech and growth stocks including Apple Inc, Tesla Inc and Nvidia Corp fall between a 0.9% and 2.1% in the first operations, while the profitability of the bonds went up slightly.
The Dow Jones Industrial Average loses 38.64 points, or 0.12%, to 33,444.08 units, the S&P 500 falls 14.98 points, or 0.37%, to 4,075.40, and the Nasdaq Composite It is down 89.02 points, or 0.74%, at 11,907.84 units.
The sector of technologies of the information was the biggest loser on the S&P 500since the Investors poured into defensive stocks such as healthcare and utilities.
A number of recent reports, including those weak data on private payrolls and job offers during this week, have suggested a slowdown in demand for labor and have raised hopes of a pause in the market-punishing Federal Reserve rate hikes.
However, unlike what has happened in recent months, when the evidence of a slowdown in the economy was applauded by investors in the hope that allow the Federal Reserve to relax its policy, weaker data has raised fears of a recession and have pressured on equities in the last days.
“The last bastions of the economy are beginning to weaken, and that indicates a recession,” he said. Peter Cardillo, chief market economist at Spartan Capital Securities in New York. “The job market is starting to weaken and that basically works in the Fed’s favor,” he added.
The S&P 500 and the tech-heavy Nasdaq are on track to post weekly declines for the first time in four weeks. On Friday the US stock market will remain closed for the Good Friday holiday.
All eyes will now be on the more comprehensive report on job creation which will be announced on Friday, in which they are expected to have increased by 239,000 in March, down from the previous 311,000 jobs added per month.
In parallel, the president of the Saint Louis FedJames Bullard, said that the Federal Reserve should stick to raising interest rates to reduce inflation while the job market remains strong, given the high probability that recent financial stresses will continue to ease and in the absence of a marked tightening of credit conditions.
“We have a long way to go and I think that inflation is going to be persistent in the future, it is going to be difficult to get it back to the 2% target (…) So we are going to have to keep pushing to make sure that inflation is coming down again,” Bullard said after a speech on the US economy at the Arkansas Bankers Association in Little Rock, Arkansas.
Source: Ambito
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