Stock market today: Dow loses 200 points, Nasdaq 1% lower, one day before Powell’s speech in Jackson Hole
Losses on Wall Street accelerated on Thursday as traders reacted to the latest economic data and comments from Federal Reserve leaders, but the S&P 500 remained just over a percentage point away from its record closing high.
S&P Global’s preliminary PMI surveys for August pointed to further weakness in the labor market as hiring stalled in both the services and manufacturing sectors in the U.S. S&P Global said recent months have seen the worst bout of hiring weakness since the first half of 2020.
That wasn’t the only subpar data. The latest weekly unemployment numbers showed that the number of Americans applying for benefits was slightly higher than economists expected.
And while existing home sales rose in July for the first time in five months, one economist noted that the pace remained sluggish compared to what is traditionally one of the busiest sales seasons of the year.
Traders also listened to plenty of Fed-speak, including comments from Jeffrey Schmid, president of the Kansas City Fed, who had previously told CNBC he was still concerned about getting inflation back to the Fed’s 2% target. Patrick Harker, president of the Philadelphia Fed, later said he was undecided about whether to cut rates by 25 or 50 basis points next month.
As investors try to analyze what might happen next for the economy and markets, all eyes are on Fed Chairman Jerome Powell, who is scheduled to speak in Jackson Hole on Friday. His remarks are considered the highlight of the Kansas City Fed’s annual symposium.
Overall, markets are still holding up as major indexes quickly recovered from a sell-off earlier in the month. If the S&P 500 closes lower on Thursday, it would be only the second red day for the index in the past 11 sessions, according to data from FactSet.
Here are the recent stock prices:
The S&P 500 lost 36 points, or 0.6%, to close at 5,584.
The Nasdaq lost 210 points or 1.2 percent to close at 17,712.
The Dow lost 144 points, or 0.4%, to close at 40,748.
