Stocks came under pressure in early trading on Thursday but regained some ground over the course of the session. The major averages all climbed well off their lows of the session, although the tech-heavy Nasdaq continued to post a notable loss.
The Nasdaq slumped 123.64 points or 0.9 percent to 13,748.83 and the S&P 500 fell 14.34 points or 0.3 percent to 4,451.14. Meanwhile, the narrower Dow climbed into positive territory and ended the day up 57.54 points or 0.2 percent at 34,500.73.
The early weakness on Wall Street partly reflected ongoing concerns about the outlook for interest rates following recent economic data.
A report released by the Institute for Supply Management on Wednesday unexpectedly showed faster service sector growth as well as an acceleration in price growth in the sector.
Adding to the interest rate concerns, the Labor Department released a report this morning showing an unexpected decrease in first-time claims for U.S. unemployment benefits in the week ended September 2nd.
The report said initial jobless claims fell to 216,000, a decrease of 13,000 from the previous week's revised level of 229,000.
Economists had expected jobless claims to rise to 234,000 from the 228,000 originally reported for the previous week.
Jobless claims decreased for the fourth consecutive week, falling to their lowest level since a matching figure in the week ended February 11th.
"The claims data are a reminder that labor market conditions may be cooling, but the labor market is still tight," said Nancy Vanden Houten, Lead U.S. Economist at Oxford Economics.
She added, "The claims figures don't change our view for the Fed to keep policy steady at its meeting later this month, but more moderation in job growth will be needed to keep rate hikes permanently off the table."
While the Fed is still widely expected to leave interest rates unchanged at its next meeting later this month, CME Group's FedWatch Tool indicates a 43.4 percent chance of another rate hike in November.
Selling pressure waned over the course of the session, however, with some traders believing recent weakness has been overdone.
Nonetheless, a steep drop by shares of Apple (AAPL) continued to weigh on the Nasdaq, with the tech giant tumbling by 2.9 percent on the day.
The slump by Apple came after a report from Bloomberg News said China plans to expand a ban on the use of iPhones in sensitive departments to government-backed agencies and state companies.
Computer hardware stocks saw substantial weakness on the day, resulting in a 3.0 percent nosedive by the NYSE Arca Computer Hardware Index.
Significant weakness was also visible among semiconductor stocks, as reflected by the 2.0 percent slump by the Philadelphia Semiconductor Index.
Steel stocks also saw considerable weakness following weak Chinese trade data, dragging the NYSE Arca Steel Index down by 1.6 percent.
Networking, airline and banking stocks also moved notably lower, while pharmaceutical and utilities stocks have shown strong moves to the upside.
In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Thursday. Japan's Nikkei 225 Index slumped by 0.8 percent, while China's Shanghai Composite Index dove by 1.1 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the German DAX Index edged down by 0.1 percent, the French CAC 40 Index closed just above the unchanged line and the U.K.'s FTSE 100 Index rose by 0.2 percent.
In the bond market, treasuries have moved higher over the course of the session after initially showing a lack of direction. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, fell 3.0 basis points to 4.260 percent.
Trading activity may be somewhat subdued during Friday's session amid a relatively quiet day on the U.S. economic front.
THE SPX RETESTING THE 150 MOVING AVERAGE. WILL IT HOLD?
CRYPTO UPDATE AS OF SEPTEMBER 7
CANNABIS UPDATE FOR SEPTEMBER 7
CRUDE OIL, U.S. DOLLAR, INTEREST RATES, BITCOIN AND THE UAP/UFO PHENOMENON
BUY MY BOOK - IT IS ON AMAZON
OPPORTUNITY TO ACCESS MARK LEIBOVIT'S PROPRIETARY VOLUME REVERSAL INDICATOR - THIS IS THE ONLY PLACE TO DO IT!
COME ON, DAD. IT'S TIME TO EAT
WE ARE NOT FINANCIAL ADVISORS AND DO NOT PROVIDE FINANCIAL ADVICE
The website, LeibovitVRNewsletters.com, is published by LeibovitVRNewsletters LLC.
In using LeibovitVRnewsletters.com (a/k/a LeibovitVRNewsletters LLC) you agree to these Terms & Conditions governing the use of the service. These Terms & Conditions are subject to change without notice. We are publishers and are not registered as a broker-dealer or investment adviser either with the U.S. Securities and Exchange Commission or with any state securities authority.
All stocks and ETFs discussed are HYPOTHETICAL and not actual trades whose actual execution may differ markedly from prices posted on the website and in emails. This may be due internet connectivity, quote delays, data entry errors and other market conditions. Hypothetical or simulated performance results have certain inherent limitations as to liquidity and execution among other variables. PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE FORECASTING ACCURACY OR PROFITABLE TRADING RESULTS.
All investments are subject to risk, which should be considered on an individual basis before making any investment decision. We are not responsible for errors and omissions. These publications are intended solely for information and educational purposes only and the content within is not to be construed, under any circumstances, as an offer to buy or to sell or a solicitation to buy or sell or trade in any commodities or securities named within.
All commentary is provided for educational purposes only. This material is based upon information we consider reliable. However, accuracy is not guaranteed. Subscribers should always do their own investigation before investing in any security. Furthermore, you cannot be assured that your will profit or that any losses can or will be limited. It is important to know that no guarantee of any kind is implied nor possible where projections of future conditions in the markets are attempted.
Stocks and ETFs may be held by principals of LeibovitVRNewsletters LLC whose personal investment decisions including entry and exit points may differ from guidelines posted.
LeibovitVRNewsletters.com cannot and do not assess, verify or guarantee the suitability or profitability of any particular investment. You bear responsibility for your own investment research and decisions and should seek the advice of a qualified securities professional before making any investment. As an express condition of using this service and anytime after ending the service, you agree not to hold LeibovitVRNewsletters.com or any employees liable for trading losses, lost profits or other damages resulting from your use of information on the Site in any form (Web-based, email-based, or downloadable software), and you agree to indemnify and hold LeibovitVRNewsletters.com and its employees harmless from and against any and all claims, losses, liabilities, costs, and expenses (including but not limited to attorneys' fees) arising from your violation of this agreement. This paragraph is not intended to limit rights available to you or to us that may be available under the federal securities laws.
For rights, permissions, subscription and customer service, contact the publisher at firstname.lastname@example.org or call at 928-282-1275 or mail to 10632 N. Scottsdale Road B-426, Scottsdale, AZ 85254.
The Leibovit Volume Reversal, Volume Reversal and Leibovit VR are registered trademarks.
© Copyright 2023. All rights reserved.