Stocks sold off Thursday, with the\u00a0Dow Jones Industrial Average\u00a0tumbling nearly 500 points, as investors\u2019 fears over a recession surfaced.<\/p>\n
The Dow dropped 494 points, or 1.2%. The\u00a0S&P 500\u00a0shed 1.4%, while the\u00a0Nasdaq Composite\u00a0slipped 2.3%. The\u00a0Russell 2000 index, the small-cap benchmark that has rallied lately, dropped 3%.<\/p>\n
Some fresh data raised the specter of an economic contraction and the notion that the Federal Reserve could be too late to start cutting interest rates. <\/p>\n
Initial jobless claims rose the most since August 2023. And the ISM manufacturing index, a barometer of factory activity in the U.S., came in at 46.8%, worse than expected and a signal of economic contraction.<\/p>\n
The 10-year Treasury yield broke below 4% for the first time since February in a sign that more investors were seeking safe-haven assets.<\/p>\n
That weak data comes a day after the Fed chose to keep rates at the highest levels in two decades. <\/p>\n
While Fed Chair Jerome Powell did give some investors hope by signaling a September rate cut was on the table, it was not enough for market participants Thursday. <\/p>\n
\u201cThe economic data keep rolling on in the direction of a downturn, if not recession, this morning,\u201d said Chris Rupkey, chief economist at FWDBONDS, a financial market research company. \u201cThe stock market doesn\u2019t know whether to laugh or cry because while three Fed rate cuts may be coming this year and 10-year bond\u00a0yields are falling below 4.00%, the winds of recession are coming in hard.\u201d<\/p>\n
Shares in companies that would likely suffer the most during a recession saw some of the biggest declines, including\u00a0JPMorgan Chase, which lost 2%, and Boeing, which fell more than 5%.<\/p>\n
Stocks began the day on a high note, as Facebook parent\u00a0Meta Platforms\u00a0rallied more than 4% on\u00a0stronger-than-expected\u00a0second-quarter results and upbeat guidance. <\/p>\n
But Meta was one of the few stocks in the green as the trading day went on.<\/p>\n
Even stocks such as\u00a0Nvidia, which has soared for much of the year,\u00a0were feeling the pain, with the artificial intelligence chip leader off 8% as investors overall may be taking some figurative chips off the table into what could be a more volatile time for the market with a November election around the corner. <\/p>\n
The S&P 500 is still up about 14% for the year, coming off its eighth-positive month in the last nine in July.<\/p>\n<\/p>\n
Stocks sold off Thursday, with the\u00a0Dow Jones Industrial Average\u00a0tumbling nearly 500 points, as investors\u2019 fears…<\/p>\n","protected":false},"author":0,"featured_media":2357,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-2356","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/posts\/2356","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/comments?post=2356"}],"version-history":[{"count":0,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/posts\/2356\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/media\/2357"}],"wp:attachment":[{"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/media?parent=2356"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/categories?post=2356"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/tradetrovex.com\/index.php\/wp-json\/wp\/v2\/tags?post=2356"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}