Stocks fell as investors awaited jobs data coming Friday.
The Dow Jones Industrial Average dropped 432 points, or 1.25%. The S&P 500 lost 0.6%, while the Nasdaq Composite shed 0.7%.
The moves departed from earlier boosts that followed the release of the Core Personal Consumption Expenditures Index, a closely watched gauge of spending. October data showed the index rose 0.2%, below the consensus estimate of 0.3% collected from economists by Dow Jones.
Investors will be watching Friday for data on the unemployment rate and non-farm payrolls.
It also marks a turn from Wednesday’s sharp and broad rally, with the Nasdaq Composite and the S&P snapping three-day losing streaks after Powell appeared to confirm a slowdown in the central bank’s tightening — a question that’s lingered in recent weeks.
“Whether intentional or not, Powell sent a message that, in light of the tightening that’s already been done, he’s now more focused on the growth outlook and the employment picture than he is on bringing down inflation to 2%,” said Chris Senyek, chief investment strategist at Wolfe Research.
Thursday marks the first day of trading in the month, coming off a winning November for the major averages. The Nasdaq rose 4.37% — its second positive month in a row for the first time since a three-month streak ending December 2021. The S&P 500 and Dow rose 5.38% and 5.67%, respectively, to finish their second month of gains for the first time since August 2021.
Dollar General dropped 8% after it cut its full-year forecast, citing higher costs. On the other hand, Okta shot up nearly 19% after the identity management software company issued an upbeat full-year financial outlook, while Five Below gained about 11% after it reported an earnings beat.
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