Stocks dipped lower Thursday as Federal Reserve officials signaled that signs of easing inflation has not changed the course of the central bank's rate-hiking campaign. The Dow Jones Industrial Average ended the session flat, while the S&P 500 and Nasdaq Composite slipped about 0.3% each.
Here's how the market settled Thursday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Market sentiment was weighed down on Thursday following comments from St. Louis Federal Reserve President James Bullard, who said in a speech that "the policy rate is not yet in a zone that may be considered sufficiently restrictive."
"The change in the monetary policy stance appears to have had only limited effects on observed inflation, but market pricing suggests disinflation is expected in 2023," Bullard added.
Moreover, Kansas City Fed President Esther George told The Wall Street Journal on Thursday, "I'm looking at a labor market that is so tight, I don't know how you continue to bring this level of inflation down without having some real slowing, and maybe we even have contraction in the economy to get here."
Speaking of the labor market, filings for unemployment insurance fell last week, remaining near historic lows even amid a series of tech sector layoffs. First time jobless claims totaled 222,000 for the week ended November 12, according to fresh data out of the Labor Department, decreasing by 4,000 from the previous week.
On the earnings front, the retail sector produced strong third-quarter results, with Macy's
Earlier in the week, strong monthly retail sales data for October helped offset some optimism that the Fed would soon shift its policy in the new year. An earnings miss from Target
Elsewhere, Republicans officially won a majority in the House of Representatives late Wednesday, effectively spliting control of the U.S. Congress. Market participants see this as a positive signs for stock, which have historically performed better when there is a political gridlock in Washington D.C.
