US close: Fedspeak sinks shares ahead of jobs report
US stocks fell sharply on Thursday with the Dow falling for the fourth straight day after a late-afternoon slump on the back of hawkish comments from members of the Federal Reserve.
The all-important non-farm payrolls number for March is due out on Friday and was dominating newsflow during the trading session, in light of recent upside surprises to economic data.
Investors are concerned that any pick-up in economic activity could lead to price pressures reigniting and delay a potential interest-rate cut by the Federal Reserve. Market forecasts are still pointing to a June rate cut, but resilient data this week has cast that prediction into doubt.
The Dow and Nasdaq both dropped 1.4% while the S&P 500 fell 1.2%. This 3.04% slump on the Dow over the past four sessions was the worst four-day losing streak since October last year.
Data and Fedspeak
Six members of the Fed took part in scheduled speeches on Thursday, as investors continued to watch comments closely for any hint at future adjustments to monetary policy. Among them was Richmond Fed president Thomas Barkin, who said it would be "smart for the Fed to take [its] time" before cutting rates. "No one wants inflation to reemerge," he said.
Meanwhile, head of the Chicago Fed Austan Goolsbee warned that the biggest "danger" to the inflation outlook was continued price increases in the housing services sector.
“Investors must feel they’re stuck in some kind of Groundhog Day waiting for central bankers to finally let the clock run down and cut rates,” said Danni Hewson, head of financial analysis at AJ Bell. “Will rate cuts come before the summer? Will we get one, two or even three by the end of the year, or will conflicting economic data throw a spanner in the already gummed up works?"
In economic data on Thursday, jobless claims rose to 221,000 in the week to 29 March, up from a revised 212,000 the week before and ahead of the 214,000 expected by economists.
Meanwhile, the number of layoff announcements in the US continued to rise in March, the results of a survey revealed. According to consultancy Challenger, Gray & Christmas, the number of announcements increased by 7% versus February to reach 90,039.
Market movers
Boeing shares were lower after the aircraft manufacturer said it would pay $160m to Alaska Air Group to make up for lost profit following the midair disaster on an Alaska flight in January. It is thought that the amount is just an initial part of a bigger compensation package for Alaska.
Hardware group Dell's stock rose to a record high, which market chatter put down to the ongoing hype around AI server demand.
Goldman Sachs declined after proxy adviser ISS recommended the bank separate its chairman and chief executive roles – both held by David Solomon – which would give the board "more independent oversight".
Paramount plunged nearly 9%, pulling back after a strong performance on Wednesday following the news that Skydance is launching a bid to take over the media and entertainment group.
Dow Jones - Risers
Walgreens Boots Alliance, Inc. (WBA) $18.98 2.59%
Chevron Corp. (CVX) $160.69 0.16%
Walmart Inc. (WMT) $59.50 0.12%
Dowdupont Inc. (DWDP) $0.00 0.00%
Dow Chemical Co. (DOW) $59.86 -0.22%
Travelers Company Inc. (TRV) $228.60 -0.24%
Procter & Gamble Co. (PG) $155.48 -0.45%
Apple Inc. (AAPL) $168.82 -0.49%
Microsoft Corp. (MSFT) $417.88 -0.61%
Home Depot Inc. (HD) $357.68 -0.62%
Dow Jones - Fallers
Salesforce.Com Inc. (CRM) $294.14 -3.48%
American Express Co. (AXP) $219.59 -3.11%
3M Co. (MMM) $90.54 -2.84%
Amgen Inc. (AMGN) $268.19 -2.27%
McDonald's Corp. (MCD) $270.09 -1.98%
Goldman Sachs Group Inc. (GS) $406.25 -1.87%
Merck & Co. Inc. (MRK) $127.66 -1.72%
Caterpillar Inc. (CAT) $369.79 -1.60%
Walt Disney Co. (DIS) $117.09 -1.59%
International Business Machines Corporation (CDI) (IBM) $187.94 -1.55%
S&P 500 - Risers
Nektar Therapeutics (NKTR) $1.32 26.92%
ConAgra Brands Inc (CAG) $30.64 5.44%
CF Industries Holdings Inc. (CF) $86.18 3.57%
Tyson Foods Inc. (TSN) $59.48 2.89%
L3Harris Technologies Inc. (LHX) $209.60 2.60%
Walgreens Boots Alliance, Inc. (WBA) $18.98 2.59%
Campbell Soup Co. (CPB) $43.99 2.45%
General Mills Inc. (GIS) $70.38 2.01%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $448.64 1.97%
NextEra Energy Inc. (NEE) $63.73 1.89%
S&P 500 - Fallers
Lamb Weston Holdings, Inc. (LW) $81.53 -19.37%
Advanced Micro Devices Inc. (AMD) $165.83 -8.26%
Albemarle Corp. (ALB) $121.12 -6.01%
Advance Auto Parts (AAP) $79.26 -5.82%
CenturyLink Inc. (LUMN) $1.34 -5.63%
AbbVie Inc (ABBV) $167.90 -5.32%
Tapestry Inc. (TPR) $43.03 -4.74%
Celanese Corp. (CE) $163.31 -4.65%
Gap Inc. (GPS) $24.69 -4.60%
Kohls Corp. (KSS) $25.70 -4.53%
Nasdaq 100 - Risers
Walgreens Boots Alliance, Inc. (WBA) $18.98 2.59%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $448.64 1.97%
Tesla Inc (TSLA) $171.11 1.62%
Align Technology Inc. (ALGN) $314.32 1.36%
Qurate Retail Inc. (QRTEA) $1.11 0.91%
Meta Platforms Inc. (META) $510.92 0.82%
Hasbro Inc (HAS) $55.85 0.74%
Mondelez International Inc. (MDLZ) $68.21 0.35%
DENTSPLY Sirona Inc. (XRAY) $31.94 0.30%
Baidu Inc. (BIDU) $108.47 0.14%
Nasdaq 100 - Fallers
JD.com, Inc. (JD) $26.12 -4.22%
Vodafone Group Plc ADS (VOD) $8.72 -4.13%
KLA-Tencor Corp. (KLAC) $672.75 -3.55%
Nvidia Corp. (NVDA) $859.05 -3.44%
Broadcom Inc. (AVGO) $1,317.50 -3.35%
Dollar Tree Inc (DLTR) $129.74 -3.32%
Micron Technology Inc. (MU) $124.09 -3.06%
Booking Holdings Inc. (BKNG) $3,521.93 -3.04%
O'Reilly Automotive Inc. (ORLY) $1,099.63 -2.94%
Alphabet Inc. Class A (GOOGL) $150.53 -2.83%