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U.S. stocks remain sharply lower after an early sell-off

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After the sell-off, which was observed at the beginning of the session, the shares continue to feel significant weakness in trading on Thursday afternoon. With a sharp drop in the day the main averages offset the rally at the end of the previous session.

Currently, the main averages are at their worst for the day, but remain sharply lower. The Dow was down 991.06 points or 2.9 percent to 33,070.00, the Nasdaq was down 594.89 points or 4.6 percent to 12,369.97, and the S&P 500 was down 142.37 points or 3.3 percent. to 4,157.8

The sell-off on Wall Street comes at a time when traders are earning on relief stocks that followed the announcement of the Federal Reserve’s monetary policy on Wednesday.

The Federal Reserve raised interest rates by 50 basis points, as expected, although Fed Chairman Jerome Powell was less inclined than some feared.

During his press conference after the meeting, Powell said that the Fed is not “actively considering” raising the rate by 75 basis points, which temporarily allays concerns about the prospects of rates.

However, concerns about higher rates, inflation, economic prospects and the ongoing war in Ukraine remain, contributing to a sharp retreat on Wall Street.

The sharp increase in Treasury yields also entails marketsyields on the benchmark ten-year note soared to its highest level in more than three years.

Traders are also awaiting the release on Friday of the Labor Department’s monthly vacancy report.

Currently, economists expect employment to grow by 391,000 jobs in April after rising by 431,000 jobs in March, while the unemployment rate is expected to fall to 3.5 percent from 3.6 percent.

As the monthly job report approaches, the Labor Department released a report this morning showing a modest increase in the number of first claims for unemployment benefits in the U.S. for the week ended April 30.

The report shows that initial unemployment claims rose to 200,000, up 19,000 from the previous week’s revised level of 181,000.

Economists expected the number of unemployment claims to rise to 182,000 from 180,000 originally reported the previous week.

A separate report from the Ministry of Labor showed a significant decline in productivity in the first quarter of 2022.

The Ministry of Labor reported that labor productivity fell 7.5 percent in the first quarter, reflecting the largest decline since the third quarter of 1947.

Sector News

Shares began to decline sharply amid concerns about the prospects for global demand, which led to a 6.3 percent drop in the NYSE Arca Steel index. The index fell to its lowest intraday level in more than a month.

Significant weakness also remains noticeable among retail stocks, as evidenced by the U.S. Dow Jones index, which fell 4.9 percent.

Online home goods retailer Wayfair (W) is showing a particularly sharp drop after reporting a wider-than-expected loss in the first quarter.

Oil service stocks also came under pressure during the session, pulling the Philadelphia oil service index down 4.4 percent. The weakness in the sector is when the price of crude oil delivered in June falls by $ 0.78 to $ 107.03 per barrel.

Shares of semiconductors, housing, airlines and gold are also experiencing significant weakness in the day, reflecting widespread sales pressures.

Other markets

In overseas trading, stock markets in the Asia-Pacific region on Thursday showed mixed results, and the markets of Japan and South Korea closed for the holidays. China’s Shanghai Composite Index rose 0.7 percent and Hong Kong’s Hang Seng Index fell 0.4 percent.

Major European markets also ended the day ambiguous after an early rally. While the UK’s FTSE 100 index rose 0.1 per cent, the French CAC 40 index and the German DAX index fell 0.4 per cent and 0.5 per cent respectively.

In the bond market, Treasury bonds went back sharply after a strong upward move to close on Wednesday. Subsequently, the yield on the reference ten-year note, which is moving against its value, increased by 17.3 basis points to 3.090 percent.

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