Market Turbulence: Global Tensions and Economic Indicators Weigh on Stocks
Thursday’s trading session got off to a rocky start as the Dow Jones plummeted nearly 200 points, driven by a mix of economic concerns and geopolitical tensions. The Labor Department’s latest jobless claims report showed a modest increase, sparking fears of inflationary pressures. The seasonally adjusted figure rose to 225,000, slightly above economists’ expectations of 222,000.
The report’s release comes ahead of Friday’s highly anticipated U.S. employment report, which will provide a more comprehensive picture of the labor market’s health. The upcoming report will shed light on key metrics such as the unemployment rate and hourly wage changes.
As the market opened, the Dow Jones Industrial Average shed 0.4%, while the tech-heavy Nasdaq slipped 0.1%. The S&P 500 also dropped 0.4%. Meanwhile, oil prices continued their upward trajectory, with West Texas Intermediate and Brent surging 2.5% and 2.2%, respectively. The 10-year Treasury yield edged up to 3.8%.
Despite the broad market decline, AI-related stocks bucked the trend, posting significant gains. Nvidia, Super Micro Computer, Advanced Micro Devices, Micron Technology, and Palantir Technologies led the charge, with increases ranging from 2.7% to 4.3%. In contrast, healthcare stocks such as Universal Health Services and Humana struggled, declining by 2.8% and 2%, respectively.
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