Stocks tumbled on Thursday after strong labor data spurred fears around further Federal Reserve interest rate hikes, reviving concerns about the impact of those hikes on the economy.
The S&P 500 (^GSPC) closed down about 0.8%, while the Dow Jones Industrial Average (^DJI) fell 1.1%, or over 350 points. The tech-focused Nasdaq Composite (^IXIC) fell 0.8%.
The losses came after surprisingly hawkish minutes from the Fed’s June meeting showed some policymakers were reluctant to back a pause as finally decided. Almost all backed more increases in 2023.
Markets are now seeing an 95% chance of a hike at the Fed’s July meeting, according to the CME FedWatch tool, after fresh data reports Thursday signaled the US labor market is still robust. ADP private-sector payrolls came in well above estimates. Meanwhile, other reports found that layoffs slowed and jobless claims remained relatively low.
Given stocks have previously faced headwinds from concerns the Fed’s rate hikes could tip the economy into recession, the data will serve as an appetizer for the crucial June jobs report out on Friday.
This content is not available due to your privacy preferences.
Click here for the latest stock market news and in-depth analysis, including events that move stocks
Read the latest financial and business news from Yahoo Finance