The Dow Jones Industrial Average
fell Thursday, as fresh data stoked concerns over the state of the U.S. economy.
The 30-stock Dow dropped 313 points, or nearly 0.8%. The S&P 500
shed 0.3%, while the Nasdaq Composite
slipped 0.4%.
Initial jobless claims rose to 249,000 for the week ended in July 27, higher than a Dow Jones forecast of 235,000. The ISM manufacturing index came in at 46.8, adding to a broader picture of slowing economic activity.
That data follows the Federal Reserve keeping rates unchanged and Chair Jerome Powell signaling a September rate is on the table. Yields fell Thursday as investors digested Powell’s comments, with the benchmark 10-year Treasury yield reaching its lowest level since Feb. 2.
“The economic data keep rolling on in the direction of a downturn if not recession this morning,” said Chris Rupkey, chief economist at FWDBONDS. “The stock market doesn’t know whether to laugh or cry because while three Fed rate cuts may be coming this year and 10-year bond yields are falling below 4.00%, the winds of recession are coming in hard.”
