In response to a mixed set of economic data, the majority of U.S. stocks fell on Thursday, putting them on course for their worst week since April. One of the main talking points for market pessimists since the summer of 2022 is the yield curve's inversion, which many investors believe to be a sign of an impending recession.
The Dow Jones Industrial Average dropped 0.5 per cent amounting to 219 points. The marquee index opened at 41,056.33 points on US stock markets. The index opened with 81.36 points of lead from the previous closing level of 41,974.97 points.
Despite opening with a very marginalised gap in green territory, the index slipped to a day-low of 40,519.08 points at the half-time of the trading session, shedding 455.89 points from the index.
The larger benchmark index of the Wall Street, the S&P 500, fell 0.3 per cent for the third straight day. The popular index on Wall Street saw a declining movement, which led the index to touch the day-low of 5,480.54 points on the Wall Street.
Tesla and a few other Big Tech stocks saw gains, and the Nasdaq composite outperformed the rest of the market, gaining 0.3 per cent.
This week has seen a decline in stocks as concerns about the slowing U.S. economy and its potential impact on corporate profits were stoked by yet another disastrous report on manufacturing in the United States. This has increased the stakes for this Friday's much-awaited report.
At that point, the US government will reveal the number of jobs that US companies added in the previous month, and economists predict that hiring will pick up speed. The extent of the Federal Reserve's next interest rate cut at its meeting later this month may depend on how the job market performs.
The Federal Reserve has hinted that it will soon start lowering interest rates in order to safeguard the job market and prevent the overall economy from entering a recession, after maintaining its main interest rate at a two-decade high to combat inflation.
