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Dow drops 323 points as data shows slowing jobs recovery

Aug 5, 2021, 02:30 IST
Business Insider
Reuters
  • US stocks were mixed at the close with the Dow shedding over 200 points.
  • Fed vice-chair Clarida said interest rates could rise in 2023.
  • Robinhood extended its rally for a second day, seeing a 126% two-day gain.
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US stocks closed mixed Wednesday, with Dow dropping 0.9% as investors saw signs of a stalling labor market recovery and studied fresh comments from a Federal Reserve official.

Vice chairman of the Federal Reserve Richard Clarida said the central bank is on course to scale back its support to the economy, with a liftoff in interest rates beginning in 2023.

The "necessary conditions for raising the target range for the federal funds rate will have been met by year-end 2022," and pave the way for a raising interest rates in 2023, Clarida told a webinar held by the Peterson Institute for International Economics, as quoted by Bloomberg.

US private-sector businesses added 330,000 jobs in July, ADP said in its monthly hiring report this morning. The print fell well short of the 683,000-payrolls forecasted by economists, but still marked a seventh straight gain.

Here's where US indexes stood at the 4:00 p.m. ET close on Wednesday:

Shares of Robinhood surged as much as 82% in Wednesday trades, extending its two-day gain to 126% as investors piled into options the first day they traded. The move higher also comes as Robinhood takes the spot as the most mentioned stock on Reddit's Wall Street Bets forum.

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The Robinhood rally put its co-founders within reach of a $1.4 billion stock payout, according to the company's S-1 filing.

West Texas Intermediate crude fell 3.66% to $67.98 per barrel. Brent crude, oil's international benchmark, slid 3.02%, to $70.22 per barrel.

Gold finished the day flat near $1814 per ounce.

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