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U.S. stocks fall after jobless claims raise recession fears

Published 04/06/2023, 09:57 AM
Updated 04/06/2023, 11:13 AM
© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks are falling on Thursday as stronger-than-expected jobless claims added to fears that a recession was coming.

At 11:10 ET (15:10 GMT), the Dow Jones Industrial Average fell 97 points or 0.3%, while the S&P 500 fell 0.2% and the NASDAQ Composite fell 0.1%.

New claims rose to 228,000 last week, according to the Labor Department, far more than the 200,000 expected. The report adds to weaker-than-expected reports on private payrolls, job openings and factory orders this week. The highly anticipated job report for March is due out Friday.

Evidence of a slowing economy is encouraging futures traders to place more bets on a pause in the Federal Reserve’s rate hiking strategy. Slightly more traders are forecasting a pause compared with a smaller number of traders who are predicting a quarter of a percentage point hike next month.

Analysts expect tomorrow’s jobs report will say the economy added 239,000 jobs last month.

St. Louis President James Bullard spoke on the economy and monetary policy, saying financial conditions have become tighter and the Fed can continue to raise rates while using other methods to handle financial stress. While the jobs report is due out tomorrow, the stock market will be closed for Good Friday in the U.S.

Next week, first quarter earnings season kicks off with the biggest U.S. banks, a month after turmoil in the sector following the collapse of Silicon Valley Bank and Signature Bank. Investors will be listening to what bank executives say about the state of lending and consumer behavior.

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Shares of warehouse retailer Costco Wholesale Corp (NASDAQ:COST) fell 2.7% after it reported weak same-store sales in March.

Oil fell. Crude Oil WTI Futures were flat at $80.58 a barrel, while Brent Oil Futures crude was up 0.1% to $85.05 a barrel. Gold Futures fell 0.5% to $2025.

Latest comments

A classic example of causation versus correlation. "Fear of recession" doesn't cause the equity market to fall. Note --- the market is currently on an uptrend at 1:20PM.
fall? are we looking at the same markets ?
Note the timestamp of this article
Look what Fed did! Their blind action of reckless rate hike must be stopped.
The 11AM miracle "rally" unfolds in broad daylight, as more losses are vanquished.  Don't see the BIGGEST INVESTMENT JOKE IN THE WORLD tank at 11AM during a "gain," now do you?  Fraudulent, criminally manipulated, predictable farce.
Tomorrow’s session will bring nonfarm payrolls and unemployment rate.At this time those results may be worse than expected because jolts, as results, ADS and jobless are worse than expected.
well if jobless claims were down, the title could have been markets were down because of fears of further interest hike
But no recession fears last week when claim were 248,000, another headline that makes no sense.
The market didn't know it was 246k last week.
US market will bankrupt
On, no! Thanks for the warning.
How does the stock market itself go bankrupt?  Market makers are delta-neutral.
Data in line with a soft landing scenario. And it's driving the knuckledraggets and America-haters crazy.
You don't.
not many do , only idiots and nationalists like you.
see, there is no reason you nationalist ah.
10AM breaker fires with the predictability of the rising tide.  Why doesn't it fire during a "rally," and cause a spike lower?  Why?  Because everything is set to criminally inflate the most grossly overvalued "market" in history.  No longer a true market system, the US Ponzi scheme is a manipulated FRAUD.
lmao if stocks have started falling because of fears of recession brother we are going down
Fed focuses on inflation and forgets recession
"stock market will be closed for Good Friday in the U.S."  --  Will close early, not closed for day.
Scratch that.  Bond market will close early.
The economy is slowing down which shows the fed policies are working as expected. Not sure why everyone is loosing their mind.
Agree this is what we need to stop inflation its a good thing
Just zoom out to see the full picture. The number itself just tells you a part of the story
lol. the fed drove rates from 16% to 1%. Held them under 1% for a decade. then raised them at every meeting for over a year and rates have doubled. anyone who doesn't see this sham is a fool. anyone who doesn't see recession is worse.
bad news is bad news
DJ is turning green. The bubble is just getting bigger day by day
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