Wall Street retreated on Thursday, with major indexes heading for a third straight day of losses as stronger-than-expected economic data reduced hopes for near-term Fed rate cuts and lifted the dollar.
The U.S. economy grew at an annualized 3.8% in the second quarter, up from a prior 3.3% estimate and the fastest pace since the third quarter of 2023.
VOO is trading near recent highs. See what is driving the move here.
Fresh labor data also eased concerns over a weakening job market: initial jobless claims fell by 14,000 to 218,000 in the week ending Sept. 21, well below expectations for 235,000 and the lowest level in two months.
The upbeat numbers drove the dollar higher for a second session and pushed Treasury yields up, particularly on short-dated maturities, as markets trimmed expectations for Fed easing.
The CME FedWatch tool now shows an 83% chance of a 25-basis-point cut in October, down from 92% a day earlier, while odds of a second cut in December fell to 63% from 73%.
At midday, the S&P 500 slipped 0.4% to 6,610, the Nasdaq 100 dropped 0.3% to 24,430, and the rate-sensitive Russell 2000 led declines with a 1% loss.
In commodities, gold held steady near $3,740 an ounce, while silver advanced 2% to $44.70.
In crypto, selling intensified: Bitcoin (CRYPTO: BTC) fell 2% to $111,000, Ethereum (CRYPTO: ETH) lost 5% and Solana (CRYPTO: SOL) sank 6%.
Thursday’s Performance In Major U.S. Indices, ETFs
According to Benzinga Pro data:
The Vanguard S&P 500 ETF (NYSE: VOO) fell 0.5% to $606.57.
The SPDR Dow Jones Industrial Average (NYSE: DIA) inched 0.2% down to $459.97.
The tech-heavy Invesco QQQ Trust Series (NASDAQ: QQQ) eased 0.4% to $593.46.
The iShares Russell 2000 ETF (NYSE: IWM) dropped 1% to $239.24.
The Energy Select Sector SPDR Fund (NYSE: XLE) outperformed, up 0.8%; the Health Care Select Sector SPDR Fund (NYSE: XLV) lagged, down 1.8%
S&P 500’s Top 5 Gainers On Thursday
S&P 500’s Top 5 Losers On Thursday
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