Stocks Sink Before Jobs as Tech Hit in Late Hours – US Market Wrap

Stocks fell sharply, while bonds rallied, as a fresh dose of weak economic data prompted traders to question whether Jerome Powell’s Federal Reserve is wise to delay cutting interest rates until September.

Thursday’s price action was another example of extreme day-to-day volatility, with investors flocking to Treasuries as the latest safe haven. The Nasdaq 100 experienced its largest one-day reversal since May 2022. In late hours, a $276 billion exchange-traded fund tracking the gauge fell as Intel and Amazon fell on disappointing results, while Apple whipsawed.

Asset market swings are widening as investors struggle to assess the economy and earnings at a time when the Fed’s stance is viewed one day as stimulative and the next as concerning for future growth. US 10-year yields fell below 4%, and swap traders have fully priced in three rate cuts this year. In the lead-up to the jobs report, data showed that unemployment claims reached a nearly one-year high and manufacturing shrank.