Wall Street sells off ahead of jobs report, investors digest Fed comments
Federal Reserve officials took a cautious approach in comments on the outlook for interest rate cuts, and investors braced for Friday's U.S. monthly jobs report.
Investors also digested comments from U.S. President Joe Biden, who called for an immediate ceasefire in a call with Israel Prime Minister Benjamin Netanyahu over the Gaza war. Oil prices climbed amid the geopolitical tensions.
All of the major S&P 500 sectors fell on the day, led by a 1.7% drop in technology, while defense-related shares like Lockheed Martin gained.
Among the comments by Fed officials, Minneapolis Fed Bank President Neel Kashkari said that at the U.S. central bank's meeting last month he penciled in two rate cuts this year but that if inflation continues to stall, none may be required this year.
Earlier on Thursday, Richmond Fed President Thomas Barkin said the U.S. central bank has «time for the clouds to clear» on inflation before starting to cut rates.
On Wednesday, Fed officials including U.S. central bank chief Jerome Powell stuck with a cautious rate-cut strategy.
«It's a very careful, measured approach,» said Paul Nolte, senior wealth adviser and market strategist for Murphy & Sylvest in Elmhurst, Illinois.
In addition, he said, «there's some nervousness coming into that (jobs) report» on Friday.
The Cboe Volatility index posted its highest close since Nov. 1.
Stocks were higher early in the day following U.S. jobless claims data that helped to underpin rate-cut hopes. The data showed the number of Americans filing new
