Stocks fell lower on Thursday after stronger-than-expected employment data signaled that the labor market remains tight despite the Federal Reserve's aggressive interest rate hikes. The Dow Jones Industrial Average dropped over 300 points, while the S&P 500 and Nasdaq Composite fell 1% and 1.5%, respectively.
Here's how the market settled on Thursday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Driving market moves, the ADP private payrolls report released Thursday morning showed employers added 235,000 jobs in December, topping Bloomberg estimates for an increase of 150,000. Weekly jobless claims also fell to a three-month low at 204,000 last week, marking its lowest level since September and indicates that the labor market remains resilient amid higher interest rates.
Also impacting the broader market, Amazon
Bed Bath & Beyond
Elsewhere, Silvergate Capital
"There is low visibility per stabilization in retail trading volumes in 2023 following further December deterioration," the firm wrote in a note on Thursday. "Potential SEC enforcement action is elevated post-FTX with regulatory certainty unlikely until 2024."
On Friday, investors will react to the December jobs reports and look for more clues on the Federal Reserve's next moves in response to updated data on employment levels and wage growth. Economists estimate that U.S. employers added about 200,000 payrolls last month, representing a slight slowdown from November's gains.