Stocks fell in Thursday afternoon trading as investors weighed the latest statements from Federal Reserve officials and the outlook for possible interest rate cuts this year.
The Dow Jones Industrial Average fell more than 500 points, or 1.3%, to $38,618, the S&P 500 fell 1.1% and the Nasdaq fell 1.2%.
In the comments, Minneapolis Fed President Neel Kashkari, who decided on two interest rate cuts this year at the central bank’s meeting last month, said none may be needed this year if inflation remains stagnant.
Richmond Fed President Thomas Barkin said early Thursday that the central bank has “time for the clouds to clear” on inflation before starting to cut rates.
Stocks rose early in the day on unemployment claims data that supported expectations for a rate cut.
The number of Americans filing new claims for unemployment benefits rose more than expected last week, data showed.
said Oliver Pursche, senior vice president and advisor at Wealthspire Advisors in Westport, Conn. In other words, we’re somehow okay where we are. ”
Investors look forward to Friday’s monthly U.S. jobs report for further clues on the labor market and inflation.
Economists polled by Reuters expect non-farm payrolls to fall to 200,000 in March from 275,000 in February, while the unemployment rate will remain flat at 3.9%. .
On the plus side, Levi Strauss shares soared after the apparel maker raised its full-year profit forecast, citing savings from recent cost-cutting measures and fewer discounts.
