Stocks wavered Thursday, continuing their September stumble ahead of a crucial jobs report coming Friday that market strategists say will test equities’ near all-time high levels amid concerns about the U.S. economy.
The blue chip Dow Jones Industrial Average fell 180 points, or 0.4%, by late afternoon, and the benchmark S&P 500 dipped 0.2%, with both largely sector neutral indexes on track to close at their lowest prices since mid-August (the tech-concentrated Nasdaq booked a 0.4% gain).
All three indexes are down noticeably this week, with the Dow down 760 points, or 1.8%, the S&P down 2.5% and the Nasdaq down 3.2% during September’s first three trading sessions.
The slump is the result of “yet another mini growth scare,” Pictet Asset Management strategist Arun Sai told CNBC, as investors grappled with a series of data points which signal potential for a major U.S. economic slowdown, the latest of which was a Thursday morning ADP private employment report which revealed August was the worst month for private employer hiring since early 2021.
But the “true test” for stocks will be Friday’s monthly jobs report from the Labor Department, according to Morgan Stanley strategist Michael Wilson, who wrote to clients there’s “a lot riding” on the Friday labor market release after worse-than-expected employment report on Aug. 2 that spurred a 1,600-point selloff in the two sessions following the release.
“Employment data remains key to determining” the direction of the broader equity market,” concurred UBS strategist Maxwell Grinacoff.
Consensus economist forecasts call for the government to report job growth of 160,000 and an unemployment rate of 4.2% in August, according to FactSet, an improvement from July’s 114,000 job growth and 4.3% unemployment. Stronger job growth and lower unemployment in August would spur a “potential catch-up” rally for stocks, while a poor jobs report “would likely rekindle growth fears” and downwardly pressure stocks, according to Wilson.
Yesterday, I came across an AMAZING local Facebook group: Cedar City Worst Drivers. In this group, people have posted photos of actual LOCAL people in Southern
Minnesota added 14,400 jobs in August, the largest monthly gain since July 2022, the Minnesota Department of Employment and Economic Development said Thursday.
Warner Music Group said Thursday it would lay off about 750 employees, or 13% of its workforce, as part of a revised strategic restructuring plan t
Listen to this article Minnesota saw its largest monthly employment increase in more than two years last month as state employers added 14,400 jobs, the Minn