U.S. Stocks Drop Amid Confusing Economic Signals
U.S. stocks fell on Thursday as mixed economic data and comments from the Chicago Fed President fueled uncertainty over interest rate cuts. Most sectors, except energy, declined. Investors await further company earnings and inflation data to assess interest rate expectations, following a recent rate cut by the U.S. Fed.
U.S. stocks experienced a decline on Thursday, with most sectors seeing red, as mixed economic data clouded predictions for future interest rate cuts. Initial jobless claims fell by 14,000 to a seasonally adjusted figure of 218,000 for the week ending September 20.
Chicago Fed President Austan Goolsbee expressed caution about cutting rates too rapidly, citing inflation risks, despite the U.S. central bank's recent rate cut by 25 basis points. Investor predictions for another rate cut in October have fallen to 83.4% from 92% earlier, according to the CME FedWatch Tool.
The Dow Jones dropped 215.60 points, the S&P 500 42.51 points, and the Nasdaq Composite 159.04 points. Accenture's shares fell 3%, despite reporting better-than-expected revenue, while CarMax shares dropped 19% on weaker profits. Investors are eagerly eyeing upcoming earnings reports and the Fed's preferred inflation measure, the Personal Consumption Expenditures price index, for more insights.
(With inputs from agencies.)
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