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Stocks struggled Thursday as investors dumped risk assets and concerns mounted over the outlook for the U.S. economy ahead of Friday’s keynote labour report.
The Dow Jones Industrial index handed back 219.22 points to close Thursday at 40,755.75.
The S&P 500 reversed 16.66 points to 5,503.41.
The NASDAQ gained ground 43.37 points to 17,127.66.
In other news, Tesla popped 4% after the electric vehicle maker said it plans to launch its full self-driving software in Europe and China early next year. Frontier Communications dropped 8% after Verizon said it would buy the company in a $20 billion deal valuing it below Wednesday’s close. Verizon added 0.3%.
Fresh labour market data Thursday sent mixed signals about the health of the U.S. economy as questions linger over whether the Federal Reserve is behind the curve on rate cuts. Private payrolls data showed the weakest growth since 2021, heightening fears of a slowing labour market. However, weekly claims for unemployment benefits declined from the previous week.
The market has shown hypersensitivity to potential growth scares in recent weeks, including Tuesday’s selloff on the heels of weak manufacturing data. That puts heightened scrutiny on labour market data, with all eyes on Friday’s August non-farm payrolls report. A weak July report released last month spurred recession fears and a raft of volatility in August.
Prices for the 10-year Treasury advanced, lowering yields to 3.73% from Wednesday’s 3.76%. Treasury prices and yields move in opposite directions.
Oil prices settled one cent to $69.19 U.S. a barrel.
Gold prices were higher $19.80 to $2,545.80.
