Stocks closed lower on Thursday, influenced by hawkish Fed comments and mixed economic data

From Nasdaq: 2024-12-06 09:23:58

On Thursday, major US stock indexes closed lower, with the S&P 500 down 0.19%, Dow Jones down 0.55%, and Nasdaq down 0.31%. Stocks retreated from record highs due to long liquidation and profit-taking, influenced by hawkish comments from Fed’s Daly. Mixed economic data included higher jobless claims and a narrower trade deficit.

US weekly initial unemployment claims rose to 224,000, above expectations. The Oct trade deficit narrowed to -$73.8 billion, beating forecasts. Fed’s Daly noted no urgency for rate cuts, emphasizing policy alignment with the economy. Bitcoin surged past $103,000 on news of a pro-cryptocurrency SEC chair appointment.

Markets anticipate Friday’s nonfarm payrolls and average hourly earnings data. A 70% probability is seen for a 25 bp rate cut at the December FOMC meeting. Overseas markets closed higher, with Euro Stoxx 50 up 0.66%, Shanghai Composite up 0.12%, and Nikkei up 0.30%.

Interest rates rose, with 10-year T-notes pressured by Daly’s comments and European bond declines. European bond yields increased, with German bund yield up to 2.111%. Eurozone retail sales fell 0.5% m/m, while German construction PMI and factory orders declined.

Stock movers included Synopsys, Uber, AeroVironment, American Eagle Outfitters, SentinelOne, and Applied Materials. Brown-Forman and Tesla led gainers. Fiserv and Principal Financial Group declined. Earnings reports on 12/6 include Avid Bioservices, Duckhorn Portfolio, Genesco, Lovesac Co, National Beverage, PACS Group, and RH.



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