Stocks fall as bets strengthen for a Fed hike in July: Stock market news today

Stocks fell on Thursday after strong jobs data sparked fears of further interest rate hikes from the Federal Reserve, reigniting worries about the impact of those hikes on the economy.

The S&P 500 (^GSPC) fell about 0.8%, while the Dow Jones Industrial Average (^DJI) fell 1.08%, or about 370 points. The technology-focused Nasdaq Composite (^IXIC) fell 0.9%.

All three major benchmarks posted losses on Wednesday, after surprisingly hawkish minutes from the Fed’s June meeting showed some policymakers were reluctant to back a pause as ultimately decided. Almost all supported more increases in 2023.

Markets are now seeing a 95% chance of a rise at the Fed’s July meeting, according to CME tool FedWatch, after new data released on Thursday signaled that the US labor market is still robust. ADP’s payroll in the private sector was well above estimates.

Given that stocks have already faced headwinds amid fears that Fed rate hikes could tip the economy into recession, the data will serve as an appetizer for the crucial jobs report from June published on Friday.

This content is not available due to your privacy preferences.

Update your settings here to see it.

Click here for the latest stock market news and in-depth analysis, including events moving stocks

Read the latest financial and business news from Yahoo Finance

Leave a Comment