XLP - Stocks On Shaky Ground As Traders Tread Lightly Ahead of Friday's Jobs Data: What's Driving Markets Thursday? | Benzinga
Risk aversion returned on Thursday as stocks retraced their gains from Wednesday. Traders are now closely monitoring the eagerly anticipated non-farm payrolls data set to be unveiled by the Bureau of Labor Statistics on Friday.
By midday trading in New York, not a single S&P 500 sector registered gains, underscoring the overall prevailing weak sentiment in the market. Treasury yields exhibited relatively low volatility, and the U.S. dollar experienced a marginal decline.
On Thursday, two Federal Reserve speakers shared their insights. San Francisco Fed President Mary Daly said the market’s expectations for interest rate hikes in both November and December seem reasonable, emphasizing the importance of not prematurely declaring victory against inflation.
Richmond Fed President Thomas Barkin commented that interest rates may appear elevated at the moment, but he believes they are not excessively high in the long-term perspective.
Cues From Thursday's Trading:
The S&P 500 fell 0.6%, while the Nasdaq 100 slipped 0.8%. Blue-chip stocks were 0.5%, same as small caps in the Russell 2000.
US Index Performance On Wednesday