Stocks fell on Thursday after strong labor data prompted fears of further interest rate hikes by the Federal Reserve, reviving concerns about the impact of the hikes on the economy.
The S&P 500 (^GSPC) fell about 0.8%, while the Dow Jones Industrial Average (^DJI) fell 1.08%, or about 370 points. The tech-focused Nasdaq Composite (^IXIC) fell 0.9%.
All three major benchmarks logged losses on Wednesday, after surprisingly hawkish minutes from the Fed’s June meeting showed some policymakers were reluctant to call a halt as finally decided. Almost all support further increases in 2023.
Markets now see a 95% chance of a hike at the Fed’s July meeting, according to the CME FedWatch tool, after new data reports on Thursday signaled that the US labor market was strong still on. ADP private sector payrolls are above estimates.
As stocks have previously faced headwinds from concerns that the Fed’s rate hikes could tip the economy into recession, the data will serve as an appetizer for the crucial June jobs report. on Friday.
This content is unavailable due to your privacy preferences.
Update your settings here to see it.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance