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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 tumbled 345.03 points, to stop for lunch hour at 40,629.94.
The S&P 500 reversed 31.28 points to 5,488.79.
The NASDAQ slipped 27.81 points to 17,056.48.
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 nonfarm 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 3.75% from Wednesday’s 3.76%. Treasury prices and yields move in opposite directions.
Oil prices gained 70 cents to $69.90 U.S. a barrel.
Gold prices were higher $10.10 to $2,536.10.
