During the session, data released on Thursday showed that US retail sales unexpectedly rose 0.3% in August.in a sign that the economy could tolerate higher rates as the Federal Reserve tightens monetary policy.
A separate report from the Department of Labor showed that initial claims for state unemployment benefits fell by 5,000, to a seasonally adjusted number of 213,000, in the week ending September 10, indicating a flexible labor market.
However, investor sentiment turned bearish after the World Bank and International Monetary Fund warned of an impending global economic slowdown.
“The economic conditions are very good in the United States. It is fully compatible with the 75 basis point increase path for the next meeting.” Congratulations ShatwanFrom Natixis Investment Managers Solutions.
Selling gained momentum towards the end of the sessionwith market leaders, including Microsoft Corp. and Apple Inc. and Amazon.com Inc. hit stronger Nasdaq.
Banks, sensitive to interest rate movements, Help mitigate the decline in the indicator Dow Jones.
“It’s been a tough year and investors are cautious,” he said. Matthew Keatormanaging partner of the Keator Group, a wealth management firm in Lenox, Massachusetts.
“The question is what will happen in November.” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.
European shares reversed earlier gains and closed lower on Thursdayby pressing from energy and technology titles, Concerns about monetary tightening and geopolitical turmoil have dampened risk appetite.
The The STOXX 600 closed down 0.7%., to extend their losses to a third consecutive session. Crude oil price crash caused by demand concerns Energy stocks lost 2.1%. Technology stocks fell 1.8 percent, with the largest loss on the Stoxx 600 index. The sector tends to underperform in a higher interest rate environment, due to concerns about pressure on future earnings.
“The market remains very volatile. There is a fight between the bulls and the bears and every data that comes out provides more arguments for one or the other,” said Andrea Cicione, Head of Strategy at TS Lombard.
Against the backdrop of Western sanctions against Russia over its invasion of Ukraine, China said on Thursday that it would work with Moscow to “infuse stability and positive energy in a chaotic world”.
Concern about a gas crisis in Europe Because of the war, the bloc’s leaders pushed for support measures for businesses and citizens.
European banks rose 1.7%backed by bets on higher interest rates. Morgan Stanley Raise the banking sector to “overweight” , Citing cheap reviews and the power of earnings.