Economic Jitters: US Stocks Tumble Amid Fed Rate Speculation
U.S. stocks ended lower as mixed economic data intensified uncertainty over the Federal Reserve's interest rate plan. Comments by Chicago Fed President Austan Goolsbee expressed caution over rapid rate cuts amid inflation risks. The market eagerly awaits further economic indicators, including the upcoming U.S. jobs report.
On Thursday, U.S. stocks closed lower, driven by increased uncertainty over the Federal Reserve's interest rate strategies following mixed economic data. The latest figures showed a drop of 14,000 in initial jobless claims, adjusting to 218,000 by September 20, indicating robust consumer spending and business investment.
Chicago Fed President Austan Goolsbee voiced caution about hastily cutting rates given inflation risks. This follows the Federal Reserve's recent 25 basis point rate cut, the first since December, amid signs of labor market fragility. Investor confidence in another October rate cut has slightly wavered, dipping to 83.4% from 92%, per the CME FedWatch Tool.
With important financial reports on the horizon, investors are particularly focused on the Personal Consumption Expenditures price index and the forthcoming U.S. jobs report to gain clearer insights into future interest rate paths. Companies like Accenture and CarMax saw their shares drop, highlighting the market's volatility amid broader economic scrutiny.
(With inputs from agencies.)
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