Market Snapshot: Dow slides for third straight day as investors digest mixed signals on economy

by | Jan 19, 2023 | Stock Market

U.S. stocks slumped for a third straight session Thursday as investors weighed mixed signals on the strength of the economy, digested another round of corporate earnings reports and remained focused on the outlook for the pace and scope of future Federal Reserve interest rate increases.How stocks are trading
The Dow Jones Industrial Average
fell 236 points, or 0.7%, to 33,061.

The S&P 500
fell 35 points, or 0.9%, to 3,894.

The Nasdaq Composite
shed 122 points, or 1.1%, to trade at 10,835.

On Wednesday, the Dow fell more than 600 points, or 1.8%, while the S&P 500 shed 1.6% and the Nasdaq Composite declined 1.2%. The S&P 500’s decline was its biggest since Dec. 15, chopping its gain for the year to just 2.3%.

What’s driving markets Stocks have suffered this week, with investors keying in on further signs of a weakening U.S. economy. Data on Wednesday showed retail sales fell more than expected, industrial production slumped, and Microsoft
confirmed it would shed 10,000 jobs. “What just some weeks ago would have seen markets cheering the weaker data as it would have suggested correctly that the Fed’s aggressive rate hike campaign is doing its job in tamping down the demand side of the economy, is now being judged more harshly with bad news no longer enjoying a warm welcome by traders and investors alike,” said Quincy Krosby, chief global strategist for LPL Financial, in a note. On Thursday, good news for the economy also appeared to be bad news for stocks after first-time claims for unemployment benefits unexpectedly fell by 15,000 to 190,000, the lowest reading since September. Construction on new U.S. homes fell a seasonally adjusted 1.4% in December to 1.3 …

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