Global stocks rolled over on Thursday and the major US indexes were lower for a sixth straight day.
Around 10:07 a.m. ET, the Dow was down 157 points (0.89%), the S&P 500 was down 18 points (0.89%) and the Nasdaq was down 45 points (0.93%).
The energy sector on the S&P 500 was down as much as 2%, as crude oil prices tanked. West Texas Intermediate crude futures in New York fell nearly 3% to as low as $46.58 per barrel.
But more broadly, investors continue to dump stocks in favour of less risky assets.
The market is also reacting to signals from the Fed that it has become more dovish in raising interest rates.
Six Fed officials anticipate that the Fed would raise rates once this year, up from one member who thought so in March. And so, the takeaway is that the Fed now needs more evidence of the economy’s strength before it continues to raise rates.
The yen jumped to its strongest level in almost two years. And amid heavy buying, the yield on the 10-year
Gold rose to a two-year high, by nearly 2% to as high as $1,316.75.
In economic data:
- Initial jobless claims rose more than expected, by 277,000 last week.
- The consumer price index rose 0.2% month-on-month in May, a bit less than expected. Core CPI excluding food and energy costs rose 2.2% over the prior year.
- The National Association of Homebuilders’ housing market index for June climbed to 60 from 58, topping the forecast for a rise to 59.
- The Philly Fed’s manufacturing index came in at 4.7 for May, leaping into positive territory from the prior month.