The Dow Jones Industrial Average closed down more than 400 points on Thursday (September 29) as investors feared that the Federal Reserve’s interest rate hike to curb inflation would push the US economy into turmoil. is another factor that puts pressure on the stock market.
- The Dow Jones Industrial Average closed at 29,225.61, down 458.13 or -1.54%,
- The S&P 500 index closed at 3,640.47, down 78.57, or -2.11%, and
- The Nasdaq index closed at 10,737.51, down 314.13, or -2.84%.
The US bond market faces another selloff. After several Fed officials, including Cleveland Fed President Loretta Mester, Still urging the Fed to continue raising interest rates to bring inflation back to its target.
The drop in US jobless claims to a five-month low is evidence that the US labor market is still improving. Although the Fed has raised interest rates aggressively in the past.
The number of first-time claims for unemployment benefits fell by 16,000 to 193,000 last week, the Labor Department said. which is the lowest level since April and is expected by analysts to increase to 213,000.
Phil Blancato, analyst at Thelmann Asset Management, said: This latest labor data is both good news and bad news. The drop in unemployment underlines that the Fed still has room to continue its tightening policy. What the market is worried about right now is that the Fed’s monetary policy will cause a severe recession. and will affect the operating results of listed companies These concerns are causing the sell-off in the stock market.
All 11 stocks in the S&P500 index fell, led by utility stocks. and luxury goods PG&E shares were down 2.56 percent, Excelon Corporation was down 4.86 percent, Ralph Lauren was down 1.87 percent, and Nike was down 3.41 percent.
Airline and Cruise Company Shares Fall After reports that the influence of Hurricane Ian (Ian) has led to the cancellation of flights and cruise ships. United Airlines was down 2.98 percent, Delta Air Lines was down 3.56%, American Airlines was down 3.92 percent, Royal Caribbean Cruises was down 7.93% and Carnival Corp was down 6.82%.
Apple shares fell 4.91 percent after Bank of America analysts downgraded Apple’s investment attractiveness to “neutral” from “Buy” following reports that Apple canceled plans to increase iPhone 14 production due to concerns about the company’s lower market demand than the previous forecast.
Meta Platform fell 3.67 percent after media reports said Facebook executives planned to suspend jobs and warned workers to be prepared for an impending layoff.
For US economic data released last night. The Commerce Department released its final estimate for its second quarter gross domestic product (GDP), showing US GDP contracted 0.6%, unchanged from the second estimate, while the first estimate showed the economy contracted by 0.9%.
In the first quarter, US GDP contracted 1.6% Two consecutive quarters of GDP contraction indicate that the US economy has entered a technical recession.
By InfoQuest News Agency (30 Sep 65)
Tags: Dow Jones , Stock Market , New York Stock Exchange