US stocks slip as investors weigh jobless claims with Fed chief's messaging on inflation
- Stocks fell Thursday before a second day of congressional testimony by Fed Chairman Jerome Powell.
- Jobless claims declined to a new pandemic-era low.
- Oil prices and bitcoin were in the red.
US stocks fell Thursday as investors considered a batch of mixed economic data ahead of a second day of congressional testimony by Federal Reserve Chairman Jerome Powell who reiterated his message of continued monetary support for economic recovery.
The S&P 500 and the Dow industrials moved lower after finishing Wednesday's choppy session slightly higher. In focus on Thursday will be Powell's second day of congressional testimony on monetary policy. Stocks were whipped around Wednesday after he reiterated his view that inflationary pressures are transitory and indicated that tightening monetary policy won't take place anytime soon.
Here's where US indexes stood at 9:30 a.m. on Thursday:
- S&P 500: 4,363.73, down 0.24%
- Dow Jones Industrial Average: 34,837.45, down 0.27% (101.65 points)
- Nasdaq Composite: 14,607.11, down 0.26%
The Labor Department announced initial weekly jobless claims fell by 26,000 to 360,000. Economists surveyed by Bloomberg had expected 350,000 claims. Investors also learned of a jump in factory activity in the New York region through the Empire State Manufacturing Index while the Philly Fed Manufacturing Index came in below expectations.
Powell said recent inflation data has been higher than expected or hoped for, but is linked to a "small group of goods and services directly tied to the reopening."
Around the markets, oil prices fell after the United Arab Emirates and Saudi Arabia reached a compromise on production, with the former said to have secured a higher baseline for its crude output.
Gold fell 0.1% to $1,824.95 per ounce. Long-dated US Treasury yields slipped, with the 10-year yield at 1.32%.
Oil prices fell, with West Texas Intermediate crude down 2% at $71.69.
Bitcoin dropped 3.2%, to $31,754.33.