Stocks ended Thursday’s session sharply lower, with selling pressure on tech stocks dragging down the broader market, as caution returned to the market in the wake of the Federal Reserve’s decision to keep monetary policy loose for the immediate future, and new data suggested the rebound was losing momentum.
AMZN), Facebook (FB) and Apple (AAPL), souring market sentiment and pushing the Nasdaq to its worst day in 5 sessions. Tech newcomers Snowflake (SNOW) and JFrog (FROG) also closed lower, amid a flood of initial public offerings (IPO) that traders are snapping up with abandon.” data-reactid=”17″Investors continued to jettison big tech stocks like Amazon (AMZN), Facebook (FB) and Apple (AAPL), souring market sentiment and pushing the Nasdaq to its worst day in 5 sessions. Tech newcomers Snowflake (SNOW) and JFrog (FROG) also closed lower, amid a flood of initial public offerings (IPO) that traders are snapping up with abandon.
still raging COVID-19 pandemic and no immediate fiscal boost on the table.” data-reactid=”22″The Dow also snapped a 4-day winning streak, reflecting how investors — who have bid up stocks relentlessly since late spring — are now rethinking prospects for a sharp economic rebound in the wake of a still raging COVID-19 pandemic and no immediate fiscal boost on the table.
860,000 workers filed unemployment claims in the latest period, but that figure remained below 1 million for a third straight week. In a partly encouraging sign, continuing claims — a closely watched metric of the labor market’s health in real time — fell below 13 million.” data-reactid=”23″Along those lines, another 860,000 workers filed unemployment claims in the latest period, but that figure remained below 1 million for a third straight week. In a partly encouraging sign, continuing claims — a closely watched metric of the labor market’s health in real time — fell below 13 million.
However, new housing starts fell sharply last month, new data showed, a worrying harbinger that a hot housing market could be cooling despite record low interest rates.
On Wednesday, the Fed signaled that near-zero interest rates would remain for at least the next three years, as the US economy continues to face risks around the ongoing pandemic. The Federal Open Market Committee’s newly issued expectation for interest rates to remain near zero until at least the end of 2023.
Fed officials upgraded their economic projections for this year, and now anticipate a shallower decline in real GDP and a lower unemployment rate by year-end versus their early-summer projections. Still, officials suggested that the quicker-than-expected early economic recovery could be jeopardized in absence of further fiscal stimulus.
said in remarks Wednesday.” data-reactid=”27″“The fiscal policy actions that have been taken thus far have made a critical difference to families, businesses, and communities across the country. Even so, the current economic downturn is the most severe in our lifetimes,” Fed Chair Jerome Powell said in remarks Wednesday.
“It will take a while to get back to the levels of economic activity and employment that prevailed at the beginning of this year, and it may take continued support from both monetary and fiscal policy to achieve that,” the central banker added.
coronavirus relief package.” data-reactid=”29″Prospects of further support from Congress before the November presidential elections remain dim, however, especially after the Senate failed last week to advance another coronavirus relief package.
“With U.S. interest rates locked at record lows for years into the future and the Fed holding back on incremental QE measures, the recovery path from here will depend on vaccine progress, virus dynamics, fiscal support, and presidential election politics,” said Mark Haefele, chief investment officer at UBS Global Wealth Management.
“Our base case is continued reopening momentum, widespread vaccine availability by 2Q21, and an eventual compromise deal on US fiscal stimulus. The U.S. presidential contest may kick up some near-term volatility before its eventual resolution,” he added.
retail sales growth slowed for a fourth straight month in August.” data-reactid=”32″The expiration of the federal enhanced unemployment benefits has left tens of millions of Americans put out of work during the pandemic without additional support, with the lapse of these benefits expected to weigh on consumer spending and economic activity as a whole. The Commerce Department on Wednesday reported that retail sales growth slowed for a fourth straight month in August.
—