Stocks were mostly lower in morning trading on Thursday, adding to heavy losses seen in the previous session. The Dow fell to its lowest intraday level in three months, while the Nasdaq and S&P 500 fell to two-month intraday lows.
The major averages are currently in negative territory, although the Dow is showing relatively modest losses. The Dow was down 86.53 points, or 0.3 percent, at 30,097.25, the S&P 500 was down 28.95 points, or 0.8 percent, at 3,760.98, and the Nasdaq was down 148.71 points, or 1.3 percent. interest to 11,071.48.
Wall Street’s weakness reflected lingering concerns about the economic outlook after the Federal Reserve raised its third straight interest rate by 75 basis points on Wednesday.
Although the Fed’s economic outlook provided a clearer outlook for future rate hikes, traders remain concerned about the impact of an aggressive rate hike on economy.
The Fed’s next meeting is more than a month away, giving traders plenty of time to analyze incoming economic data and try to gauge the impact of recent rate hikes.
Reports on inflation and the labor market are likely to be in focus in the coming weeks as traders look for signs that the Fed may change the aggressive plan that has been laid out.
This morning, the Labor Department released a report showing an increase in jobless claims for the week ended September 17.
The report showed that initial jobless claims rose to 213,000, up 5,000 from the previous week’s revised level of 208,000.
Economists had expected jobless claims to rise to 218,000 from 213,000 initially reported the previous week.
The modest increase came after jobless claims fell to their lowest level since the week ended May 28 the previous week.
Meanwhile, the Conference Board released a separate report showing that the index of leading US economic indicators fell for the sixth straight month in August.
The Conference Board said its leading economic index fell 0.3 percent in August after falling to a revised 0.5 percent in July.
Economists had expected the leading economic index to be unchanged from the 0.4 percent drop initially reported in the previous month.
Strong Salesforce ( CRM ) caps downside for Dow, with business the software giant jumped 2.5 percent after scrapping a plan to drive more efficiency and boost profits.
Airline stocks extended the slide seen in the previous two sessions, with the NYSE Arca Airline Index tumbling 2.7 percent to its lowest intraday level in two months.
There was also significant weakness among semiconductor stocks, with the Philadelphia Semiconductor index down 2.6 percent.
Banking stocks also showed significant downward movement on the day, dragging the KBW bank index down 1.7 percent to a two-month low.
Networks, computer hardware and retail stocks also saw notable weakness, while pharmaceutical stocks bucked the downtrend.
In foreign trade, shares markets Asia-Pacific shares were mostly lower during trading on Thursday. Japan’s Nikkei 225 fell 0.6 percent, while China’s Shanghai Composite fell 0.3 percent.
Major European markets also moved lower on the day. While the UK’s FTSE 100 fell 0.9 percent, Germany’s DAX and France’s CAC 40 fell 1.5 percent and 1.6 percent respectively.
In the bond market, Treasuries fell sharply after yesterday’s trade ended on a positive note. As a result, the benchmark ten-year bond yield, which moves inversely to its price, rose 19.4 basis points to 3.704 percent.
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