A volatile trading day as investors digested more disappointing economic news.
Data released Thursday showed growth in the massive U.S. services sector slowed more than expected in September, to its lowest since President Trump came to office.
This is the latest sign the long-lasting trade war between the U.S. and China is putting the brakes on the U.S. economy.
So far the services sector - which includes everything from travel to banking to retail to restaurants - is still growing, unlike the manufacturing sector which is already in the midst of its biggest contraction in more than a decade.
And now the Trump administration is preparing to slap tariffs on European goods, which economists worry could push the U.S. economy even closer to the brink of a recession.
The Dow tumbled at first, putting the closely-watched index on track for its worst week of the year.
But then, losses evaporated on hopes the Federal Reserve will see the need for more interest rate cuts to stave off a recession.
Wall Street may get a clue on Friday when Fed Chairman Jerome Powell speaks after the latest national hiring figures are released.
Donald Trump predicted the 2020 presidential election "will end up in theSupreme Court", and suggested that is one of the reasons he is pushing sostrongly to fill the seat vacated by the death of Justice Ruth Bader Ginsburgbefore the nation votes on November 3.
Credit: PA - Press Association STUDIO Duration: 00:45Published
President Donald Trump took a swipe at the Duchess of Sussex after she andhusband Harry participated in a Time 100 video urging Americans to vote. MrTrump said: "I'm not a fan of hers and I would say this, and she probably hasheard that, but I wish a lot of luck to Harry. He's going to need it."
Credit: PA - Press Association STUDIO Duration: 00:35Published
Wall Street's main indexes hit their lowest in nearly seven weeks Monday as concerns about fresh coronavirus-driven lockdowns and the inability of Congress to agree on more fiscal stimulus raised fears about another hit to the domestic economy. Fred Katayama reports.
On Thursday, US stocks fell 320 points. The drop comes even as weekly jobless-claims data came in better than expected. Business Insider reports that weekly jobless claims fell by more than 30,000 from the previous week, to 860,000. Tech stocks led the decline. Investors continued to process Federal Reserve Chairman Jerome Powell's comments expressing uncertainty about the economic recovery. Powell also said the Fed didn't expect to raise interest rates until at least 2023.
On Thursday, US stocks sank in turbulent trading. Falling tech giants dragged on benchmark indexes. Tech names had rebounded on Wednesday. However, they resumed their downward spiral as investors shunned their still lofty valuations. Traders also mulled weekly jobless-claims data that signaled lasting pain in the US labor market. Jobless claims totaled 884,000 for the week that ended on Saturday, missing the economist estimate of 850,000.
On Thursday, the S&P 500 extended its record highs. Federal Reserve Chair Jerome Powell spoke at this year's virtual Jackson Hole symposium. Business Insider reports that Powell outlined the central bank's overhauled strategy for controlling inflation and avoiding future crises. He also signaled that the Fed's monetary policy will remain accommodative as it seeks to stimulate the US economy. Jobless claims came in at 1 million for the week that ended on Saturday, in line with consensus estimates. Abbott Laboratories produced a COVID-19 test that received emergency use authorization from the Food and Drug Administration. Oil prices traded lower. West Texas Intermediate crude fell as much as 2.4%, to $42.36 per barrel.
Federal Reserve Chairman Jerome Powell on Wednesday repeated his pledge to use a "full range of tools" to support the U.S. economy and keep interest rates near zero for as long as it takes to recover from the fallout from the coronavirus outbreak, saying the economic path will depend significantly on the course of the virus.
Wall Street's main indexes closed lower on Monday as concerns about new lockdowns in Europe and possible delays in fresh stimulus from Congress raised fears the U.S. economy faces a longer road to recovery than previously hoped for. Fred Katayama reports.
The Federal Reserve is targeting above 2% inflation. Scott Minerd, Guggenheim global CIO told Bloomberg on Wednesday it is "virtually impossible" for the Fed to achieve that without creating a bubble in asset prices. "The reality is that the inefficiencies that are building up in the system." Minerd said misinformation and mistaken investments will pose a challenge to investors.
Equity benchmark indices traded lower during early hours on Thursday on the back of weak global cues after the US Federal Reserve indicated the interest rate could stay close to zero for years. At 10:15 am, the BSE S-P Sensex was down by 141 points or 0.36 per cent at 39,162 while the Nifty 50 lost by 39 points or 0.34 per cent at 11,565. Except for Nifty IT and pharma, all sectoral indices at the National Stock Exchange were in the negative terrain with Nifty private bank losing by 1 per cent and financial service by 0.9 per cent. Among stocks, ICICI Bank dropped by 1.3 per cent to Rs 369.85 per share while HDFC Bank lowered by 1 per cent. The other major losers were Hindalco, Tata Consultancy Services, Bajaj Auto and Tata Motors.However, HCL Technologies moved up by 2 per cent to Rs 811.20 per share and Tech Mahindra by 1.7 per cent. Dr Reddy's, Hero MotoCorp, Grasim and Asian Paints also traded with a positive bias.
Wall Street lost ground on Thursday as data showed midwest manufacturing falling into a deeper slump and concerns about the U.S.-China trade war truce rattled investors. Conway G. Gittens wraps up the..