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- US stocks dropped on Thursday, led by tech shares. The Nasdaq was down more than 1%.
- Traders are mulling the outlook for rates amid fresh data and comments this week from Fed officials.
- Apple dropped more than 3%, extending losses on Wednesday as China cracks down on iPhone use.
US stocks dropped on Thursday as investors assessed the path of interest rates in the face of new data and comments this week from central bank officials.
Tech shares led the decline, with the Nasdaq falling over 1%. Jobless claims came in lower than expected for the week, notching 216,000 versus expectations of 230,000. The figure is the lowest since February and is stoking fears that a still-strong labor market will keep the Federal Reserve on its hawkish path and possibly lead to more interest rate hikes this year.
Apple shares were sharply lower, extending losses on Wednesday when the stock closed down by more than 3%. Losses on Thursday morning were similarly sized as investors feared a widening crackdown on iPhone use as the country this week announced a ban on the use of Apple devices for government workers.
Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Thursday:
- S&P 500: 4,432.53, down 0.74%
- Dow Jones Industrial Average: 34,388.97, down 0.16% (54.22 points)
- Nasdaq Composite: 13,665.02, down 1.50%
Here's what else is going on:
- Argentina's presidential candidate is already setting things in motion to dollarize the country's economy.
- China's yuan hit a 16-year low against the dollar on Thursday, pointing to its deepening economic troubles.
- Famed investor Howard Marks warned that more companies will default as the Fed keeps up its inflation fight.
- Charlie Munger invested $80 million of his personal fortune with China's Warren Buffett, Li Lu, in 2004. It's now worth about $400 million.
In commodities, bonds, and crypto:
- Oil prices were lower. West Texas Intermediate dipped 0.35% to $87.33 a barrel. Brent crude, the international benchmark, was down 0.2% to $90.44 a barrel.
- Gold edged up 0.1% to $1,946.50 per ounce.
- The 10-year Treasury yield ticked slightly lower to 4.28%
- Bitcoin dropped 0.1% to $25,662.