Stocks fall as traders ponder economic data and company news

US stocks fell in a back-and-forth session on Thursday as a flurry of corporate headlines captured investors’ attention regarding any moves from the major averages.

The Standard & Poor’s 500 Index is down 1.1%, while the Dow Jones Industrial Average is down 170 points, or about 0.6%. The high-tech Nasdaq Composite led the way lower, down 1.5%. Moves come after a Modest recovery on Wednesday from the stock market Worst day since June 2020.

On the corporate side, “buy now, pay later” businesses have been under scrutiny amid news that the US Consumer Financial Protection Bureau (CFPB) will Starting to regulate the postpaid industry Because of concerns that their offerings are hurting consumers financially. company shares (AFRM), the pioneer in space, by 1.4%.

Elsewhere, Adobe (ADBE) announced plans to buy $20 billion from online design startup Figma in order to expand its portfolio of friendly hybrid platforms. Adobe shares are down about 17%.

In economic data, initial jobless claims fell for the fifth consecutive week to the lowest reading since May. First-time unemployment insurance filings totaled 213,000 in the week ending September 10 from 222,000 in the previous week, Ministry of Labor said Thursday. Economists called 227,000 claims, according to consensus estimates compiled by Bloomberg.

Meanwhile, data from the Commerce Department showed that consumers continued to spend in August despite persistent pressures from inflation. Retail It unexpectedly rose 0.3% last month After a revised 0.4% decline in July.

Market information is reflected in a trader’s glasses as he works on the trading floor of the New York Stock Exchange (NYSE) in Manhattan, New York City, US, September 13, 2022. REUTERS/Andrew Kelly

In the bond market, US 10-year Treasuries rose above 3.45%, and two-year Treasuries swung past 3.8%, hitting a 15-year high in the wake of the August inflation data shock earlier this week.

past months Consumer Price Index (CPI) Prices shown It rose 8.3% more than expected Over the past year, it has plunged US stock markets as investors confronted the fact that a more combative central bank policy would be necessary to tame inflation.

Bank of America economists said Wednesday in a note that Federal Reserve officials are likely to warn market participants that downside risks are increasing after next week’s policy-setting meeting.

“This is likely to come from expectations that show lower growth, higher unemployment, and a more restrictive stance on policy rates,” said strategists at Bank of America led by Michael Gaben. “While the Fed is still likely to view a soft landing as a stereotypical outcome, the window appears to be narrowing.”

The CME FedWatch Tool Thursday morning showed that markets were pricing in a near 30% probability that the Federal Reserve will raise interest rates by a full percentage point next week as inflation shows signs of entrenching in the US economy.

Cryptocurrency markets were front and center on Thursday after Ethereum completed its market A highly anticipated “merging”, A technological shift to a more energy efficient way of how coins are minted. Ethereum (ETH-USDJust under $1,600 was traded Thursday morning, while bitcoin was trading.BTC-USD) above $21,000.

Meanwhile, oil prices fell, and continued volatility in energy markets. West Texas Intermediate (WTI) crude fell 3.6% to $85.27 a barrel, reversing Wednesday’s gains, while Brent crude futures were down 3.4% at $90.95 a barrel.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter Tweet embed

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