Stocks traded lower on Thursday as concern about the economy grew among traders following the release of disappointing unemployment data and a dour economic outlook from the Federal Reserve.
The Dow Jones Industrials dropped 82 points at the outset to 27,610.88.
The S&P 500 demurred 3.25 points at 3,371.60
The NASDAQ recovered 39.63 points to 11,186.09.
Nvidia shares pulled back by 1.9% even after reporting blowout results. A better-than-expected 50% jump in revenue last quarter still wasn’t enough to lift the stock, which has doubled this year. Investors are growing concerned about valuations for high flying tech shares.
Intel shares gained 3.9% after the company announced an accelerated buyback plan, calling its stock cheap.
Weekly jobless claims stateside totaled 1.106 million last week, the U.S. Labor Department reported. Economists estimate that 923,000 first-time applicants filed for unemployment benefits during the week ended Aug. 15. In the week prior, the tally had dropped below one million for the first time since mid-March.
The jump in unemployment claims came as lawmakers struggled to move forward on a new coronavirus stimulus bill. Recently, an additional unemployment benefit for those impacted by the pandemic expired.
Thursday’s data release comes a day after the Federal Reserve released its July meeting minutes which said, “the ongoing public health crisis would weigh heavily on economic activity, employment, and inflation in the near term.”
Prices for the 10-Year Treasury rose sharply, weighing yields to 0.64% from Wednesday’s 0.69%. Treasury prices and yields move in opposite directions
Oil prices faded $1.30 at $41.63 U.S. a barrel.
Gold prices slid $30.40 to $1,939.70 U.S. an ounce.