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Meta targets Twitter with Threads app, millions are joining
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Exxon reports sharp decline in earnings
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US private sector payrolls beat expectations in June – ADP
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US weekly jobless claims rise moderately
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Indices down: Nasdaq 1.25%, S&P 1.03%, Dow 1.00%
(Updated at 9:53 a.m. ET/1353 GMT)
By Bansari Mayur Kamdar and Johann M Cherian
July 6 (Reuters) – Wall Street fell on Thursday as data signaling a resilient labor market and hawkish minutes from the Federal Reserve’s June meeting stoked fears the central bank could hold interest rates higher raised longer.
Private sector payrolls rose more than expected in June, according to ADP’s National Employment Report, indicating that the labor market remained strong despite growing risks of an interest rate-driven recession. higher.
Another survey showed that the number of Americans filing new claims for unemployment benefits increased moderately last week.
“The Fed was hoping to see a slight deterioration in the labor market,” said Randy Frederick, managing director of trading and derivatives at Charles Schwab.
“But given that the ADP number was nearly double what was expected, that generally implies there is potential for more rate hikes in the future.”
Money market traders now see nearly a 95% chance of a quarter-point rise at the bank’s next meeting on July 26, up from 90.5% earlier in the day, according to the tool. Fedwatch from CME.
Dallas Fed Chair Lorie Logan, a voting member of the Fed’s rate-setting committee, said on Thursday “it would have been entirely appropriate” to raise rates at the June policy meeting herself.
All 11 major sectors of the S&P 500 were in the red at the start of the session, with technology stocks leading the declines, down 0.9%.
Meta platforms rose 0.6% as they took aim at Twitter with its Threads app which attracted millions of users within hours of its launch on Wednesday.
U.S. stock indices fell in the previous session after Fed minutes showed a large majority of policymakers expected further policy tightening, even though they had agreed to hold rates steady in June.
As of 9:53 a.m. ET, the Dow Jones Industrial Average was down 341.58 points, or 1.00%, at 33,947.06, the S&P 500 was down 45.79 points, or 1.03%, at 4,401.03, and the Nasdaq Composite was down 173.02 points, or 1.25. %, at 13,618.64.
Investors await job postings and the survey of labor turnover and the reading of the non-manufacturing purchasing managers’ index from the Institute for Supply Management, due later today .
Among other drivers, chipmakers Qualcomm and Intel extended their declines, falling more than 1.8% each, as the trade war between Beijing and Washington escalated after China restricted metal exports used in semiconductors Monday.
Meanwhile, US Treasury Secretary Janet Yellen began her four-day visit to Beijing amid skepticism about a productive outcome.
Exxon Mobil fell 1.9% after reporting a sharp drop in second-quarter operating profit due to lower natural gas prices and lower oil refining margins, according to a regulatory filing.
JetBlue Airways fell 3.8% after the company said it would follow a US judge’s order in May to end an alliance with American Airlines to protect a planned $3.8 billion purchase of Spirit Airlines.
Falling issues outnumbered advances with a 10.68-to-1 ratio on the NYSE and a 4.86-to-1 ratio on the Nasdaq.
The S&P index recorded a new 52-week high and no new low, while the Nasdaq recorded 12 new highs and 45 new lows. (Reporting by Bansari Mayur Kamdar and Johann M Cherian in Bengaluru Editing by Vinay Dwivedi)