Stocks Falter as Economic Worries Take hold
August 01,2024 12:25 pm EST
The stock market tumbled on Thursday as fresh data stoked fears over a possible recession reversing momentum from earlier in the week.
The Dow Jones Industrials dumped 490.95 points, or 1.2%, to 40,351.94.
The S&P 500 index slid 44.77 points to 5,477.53.
The NASDAQ fell 234.98 points, or 1.3%, to 17,364.42.
Stocks that would suffer the most under a recession were among the biggest lowers, including JPMorgan Chase, which lost 2%, and Boeing, which fell more than 5%.
Stocks began the day on a high note, as Meta Platforms rallied more than 5.5% on stronger-than-expected second-quarter results and upbeat guidance. But Meta was one of the few stocks in the green as the trading day went on. Even big tech stocks like Nvidia were feeling the pain with the AI chip leader off 3%.
Stocks are coming off a winning session that saw the S&P 500 rally 1.6% for its best day since February. The Nasdaq popped more than 2%, while the 30-stock Dow closed slightly higher.
Those gains came as Federal Reserve Chair Jerome Powell signaled the central bank could cut at its next meeting if the data continues supporting the narrative that inflation is easing. The Fed held interest rates steady.
Initial jobless claims rose to 249,000 last week, higher than a Dow Jones forecast of 235,000 and the most since August 2023. The ISM manufacturing index came in at 46.8%, worse than expected and a signal of economic contraction.
Prices for the 10-year Treasury gained, with yields falling to 3.98% from Wednesday's 4.06%. Treasury prices and yields move in opposite directions.
Oil prices wilted 67 cents at $77.24 U.S. a barrel.
Gold prices shone brighter $16.20 to $2,489.20.
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