Agencies
New York
US stocks dipped on Thursday, as investors waded through the latest batch of corporate earnings, while economic data and comments from Federal Reserve officials indicated the central bank was unlikely to cut interest rates in the near future.
Economic data showed that the labor market remained resilient, as weekly initial unemployment claims were unchanged from the prior week at 212,000 while a gauge of manufacturing in the mid-Atlantic region rose to a two-year high.
The solid labor market, recent reading showing sticky inflation, and comments from Fed officials including Chair Jerome Powell have led markets to back off expectations the central bank would cut interest rates by at least 25 basis points (bps) at its Junemeeting.
“You got the unemployment numbers today and they’re not showing that the labor market is, anywhere near going from being as tight as it is, there’s no loosening the labor market that you can see,” said Tom Hainlin, senior investment strategist at US Bank Wealth Management in Minneapolis.
“Economic data just says that the economy is still in a good place and the reason for the Fed keeping rates high is positive growth, so you’re getting this whipsaw in terms of what do you want to own.”
The Dow Jones Industrial Average rose 5.94 points, or 0.02 percent, to 37,758.56 points, the S&P 500 lost 9.45 points, or 0.19 percent, to 5,012.82 and the Nasdaq Composite lost 59.14 points, or 0.38 percent, to 15,624.23 points.
