US stocks closed lower on Thursday, August 22nd, as investors grappled with fresh economic data and anticipated potential interest rate cuts by the Federal Reserve. Major market indices, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, all experienced declines, with technology stocks leading the downturn.
The decline in the stock market was driven by a combination of factors. Increasing unemployment claims and slowing business activity further fueled expectations of an economic slowdown. According to the economic data released, US jobless claims rose by 4,000 to 232,000 in the week ending August 17th, slightly exceeding analysts’ expectations. The S&P Global manufacturing PMI dipped to 48 in August from 49.6, indicating contraction in the manufacturing sector. However, the services PMI rose to 55.2 from 55, suggesting continued expansion in the services sector.
Most S&P 500 sectors closed lower, led by losses in consumer discretionary, information technology, and communication services sectors. Conversely, financials and real estate stocks ended the day with gains. The Dow Jones Industrial Average closed at 40,712.78, down 0.43% for the day. The S&P 500 ended the day lower by 0.89% at 5,570.64, while the Nasdaq Composite fell 1.67%, finishing the session at 17,619.35.
In Asian markets, Japan’s Nikkei 225 closed higher by 0.55% at 38,419.50, driven by gains in the Transportation Equipment, Pharmaceutical Industry, and Paper & Pulp sectors. Australia’s S&P/ASX 200 declined 0.04%, closing at 8,023.90, with losses in the Utilities, Energy, and Resources sectors. India’s Nifty 50 gained 0.05%, closing at 24,823.15, while the Nifty 500 closed lower by 0.09% at 23,418.65. China’s Shanghai Composite was up 0.20%, ending the session at 2,854.37, and the Shenzhen CSI gained 0.42%, closing at 3,327.19. Hong Kong’s Hang Seng ended the session lower by 0.16% at 17,612.10.
In early European trading, the European STOXX 50 index gained 0.47%. Germany’s DAX rose 0.64%, France’s CAC was up 0.61%, and the U.K.’s FTSE 100 traded higher by 0.21%.
Commodities prices were mixed in early Friday morning trade. Crude Oil WTI was trading higher by 0.90% at $73.67/bbl, and Brent was up 0.80% at $77.84 bbl. Natural Gas fell 1.12% to $2.030. Gold was trading higher by 0.63% at $2,532.60, Silver gained 1.27% to $29.415, and Copper rose 0.66% to $4.1750. Gold hit a new high of $2,550.
US futures were trading higher in the early hours of Friday morning. Dow futures were up 0.31%, S&P 500 futures gained 0.48%, and Nasdaq 100 Futures rose 0.76%.
The U.S. dollar index declined 0.09% to 101.41, the USD/JPY was down 0.08% to 146.14, and the USD/AUD fell 0.30% to 1.4869. The dollar weakened Friday ahead of Fed Chair Powell’s Jackson Hole speech, while the yen rose after BOJ Governor Ueda reaffirmed a hawkish stance.
