Stocks on Wall Street ended the day mixed on Thursday as better-than-expected private sector jobs data fueled concerns that financial markets may have been too enthusiastic about interest rate cuts.
The Federal Reserve recently signaled it expects up to three interest rate cuts this year as inflation continues to fall toward policymakers' long-term 2 percent target.
But…
Stocks on Wall Street ended the day mixed on Thursday as better-than-expected private sector jobs data fueled concerns that financial markets may have been too enthusiastic about interest rate cuts.
The Federal Reserve recently signaled it expects up to three interest rate cuts this year as inflation continues to fall toward policymakers' long-term 2 percent target.
However, markets suggested that traders were expecting up to six cuts over the same period, which looks increasingly unlikely given continued strong economic data.
The Dow Jones Industrial Average ended the day unchanged at 37,440.34.
The broad-based S&P 500 fell 0.3 percent to 4,688.68, while the tech-rich Nasdaq Composite Index extended its recent decline to end the day down 0.6 percent at 14,510.30.
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In order to achieve the interest rate cuts that the markets have already priced in, the data would have to be significantly weaker, said Karl Haeling from LBBW.
But he added that the market is “holding up pretty well if you really take away the tech stocks.”
Apple's recent problems continued at individual companies: The technology giant closed with a loss of 1.3 percent after its shares were downgraded by analysts.
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Energy group APA's share price fell more than seven percent after it announced a deal to acquire Callon Petroleum.
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