Stock market today: Wall Street opens lower as job market shows little sign of cooling

Jul 5, 2023, 11:27 PM | Updated: Jul 6, 2023, 6:42 am

NEW YORK (AP) — Stocks are falling early Thursday after reports suggested the U.S. job market is much more resilient than many thought. While a sturdy labor market keeps the economy out of a long-expected recession, it could also push the Federal Reserve to keep interest rates higher for longer in its campaign to defeat high inflation. That could mean more pressure on the economy and markets. The S&P 500 was 0.9% lower. The Dow fell 282 points, or 0.9%, while the Nasdaq was down 1%. ADP Research Institute said hiring by private employers was much stronger last month than expected. Treasury yields rose.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.

Wall Street headed lower for a second day and markets in Europe and Asia fell as well with U.S. Treasury Secretary Janet Yellen in China Thursday attempting to lower tensions between the world’s two largest economies.

Futures for the S&P 500 and the Dow Jones Industrial Average lost 0.5%.

Share prices have soared recently with more evidence that the U.S. economy is churning along, fending off recession so far despite high interest rates. A hot economy is not what the Federal Reserve needs right now in its fight against inflation.

Minutes from the Federal Reserve’s latest policy meeting released Wednesday showed that some central bank officials wanted to raise rates in mid-June, though in the end they voted unanimously to keep rates steady. The threat of further rate hikes has been weighing on investor sentiment.

One area the Fed is watching closely is the U.S. jobs landscape.

The Labor Department releases weekly jobs numbers Thursday, along with a report on job openings, and on Friday it will post critical monthly jobs data.

Meta Platforms, parent company of Facebook, Instagram and WhatsApp, rose 1.9% after bumpy ride under new owner Elon Musk. Meta shares already more than doubled this year.

Hong Kong’s Hang Seng index dropped 3% to 18,533.05, partly due to heavy selling of Chinese banks shares after Goldman Sachs downgraded them, citing concerns about the slowing economy and lenders’ exposures to debt. The Shanghai Composite index declined 0.5% to 3,205.57.

Hong Kong-traded shares in the China Construction Bank Corp. lost 2.8%; China Merchants Bank dropped 1.4% and the Industrial and Commercial Bank of China sank 3.2%.

Japan’s Nikkei 225 lost 1.7%, closing at 32,773.02. In Australia, the S&P/ASX 200 dropped 1.3% to 7,157.80 and the Kospi in Seoul lost 1.1% to 2,551.10. India’s Sensex gained 0.3%, while shares fell in 1.7% Taiwan and 1.1% in Bangkok.

The CAC 40 in Paris gave up 1.8% at midday, while Germany’s DAX and Britain’s FTSE 100 each declined 1.2%.

Hope is rising that inflation is cooling enough to get the Federal Reserve to soon stop its hikes to rates, which undercut inflation by slowing the entire economy. Much of Wall Street expects the Fed to raise rates later this month and perhaps once more later this year, as the Fed has been hinting.

That could leave the U.S. stock market stuck in a holding pattern as everyone waits to see if a long-predicted recession does happen or not. The upcoming earnings reporting season could offer some clues, with companies telling investors how much profit they earned during the spring.

Yields were mixed in the bond market. The yield on the 10-year Treasury rose to 3.97% from 3.94% Tuesday. The 10-year yield helps set rates for mortgages and other important loans.

The two-year Treasury yield, which moves more on expectations for the Fed, inched up to 4.96% from 4.95%.

In other trading, U.S. benchmark crude oil rose 30 cents to $72.09 a barrel in electronic trading on the New York Mercantile Exchange. On Wednesday it gained $2 a gallon to $71.79 a barrel.

Brent crude, the pricing basis for international trading, advanced 22 cents to $76.87 a barrel.

The dollar fell to 143.74 Japanese yen from 144.64 yen. The euro edged up to $1.0896 from $1.0857.

On Wednesday, the S&P 500 slipped 0.2% edging down from its highest level since April 2022. The Dow fell 0.4% and the Nasdaq gave back 0.2%.


Kurtenbach reported from Bangkok; Ott reported from Silver Spring, Md.

United States News

Associated Press

Former lawmaker who led Michigan marijuana board is sent to prison for bribery

GRAND RAPIDS, Mich. (AP) — A man formerly known as a powerful Michigan lawmaker was sentenced Thursday to nearly five years in federal prison for accepting bribes as head of a marijuana licensing board. Rick Johnson admitted accepting at least $110,000 when he led the board from 2017 to 2019. “I am a corrupt politician,” […]

3 minutes ago

Associated Press

Wisconsin corn mill owners plead to federal charges in fatal explosion, will pay $11.25 million

MADISON, Wis. (AP) — A milling company has agreed to plead guilty to federal charges that employees at a Wisconsin corn plant falsified records in the years leading up to a fatal corn dust explosion. The plea deal calls for Didion Milling Inc. to pay a $1 million fine and $10.25 million to the estates […]

49 minutes ago

Associated Press

Former Colorado fugitive sentenced to prison for spectacular Caesars Palace standoff in Vegas

LAS VEGAS (AP) — A former fugitive from Colorado who pleaded guilty to causing a spectacular Las Vegas Strip hotel standoff that included furniture flying from a Caesars Palace window was sentenced Thursday to pay nearly $55,300 in restitution to the hotel and to serve up to four years of prison time. Matthew John Ermond […]

57 minutes ago

Cindy McCain accepts the President Medal of Freedom on the behalf of her late husband Sen. John McC...

Kevin Stone

John McCain was ‘very well aware’ of plans for library, Cindy McCain says

Planning for a library honoring John McCain’s legacy was underway before the Arizona political icon’s death in 2018, Cindy McCain said.

1 hour ago

Associated Press

Man shot and wounded at New Mexico protest over installation of Spanish conquistador statue

ESPANOLA, N.M. (AP) — A suspect was taken into custody after allegedly shooting and wounding a man at a protest Thursday in Española where officials had planned to install a statue of Spanish conquistador Juan de Oñate, authorities said. A Rio Arriba County sheriff’s spokesman said the victim was shot in the chest or stomach […]

1 hour ago

Associated Press

State officials in Michigan scratched from lawsuit over lead in Benton Harbor’s water

BENTON HARBOR, Mich. (AP) — A federal judge on Thursday dismissed state officials from a lawsuit related to past lead contamination in a small southwestern Michigan city’s drinking water but said the case could proceed against city officials, including the mayor. Lawyers for residents compared Benton Harbor to Flint where lead contaminated the city’s water […]

1 hour ago

Sponsored Articles

Home moving relocation in Arizona 2023...

BMS Moving

Tips for making your move in Arizona easier

If you're moving to a new home in Arizona, use this to-do list to alleviate some stress and ensure a smoother transition to your new home.



When most diets fail, re:vitalize makes a difference that shows

Staying healthy and losing weight are things many people in Arizona are conscious of, especially during the summer.


OCD & Anxiety Treatment Center

5 mental health myths you didn’t know were made up

Helping individuals understand mental health diagnoses like obsessive compulsive spectrum disorder or generalized anxiety disorder isn’t always an easy undertaking. After all, our society tends to spread misconceptions about mental health like wildfire. This is why being mindful about how we talk about mental health is so important. We can either perpetuate misinformation about already […]

Stock market today: Wall Street opens lower as job market shows little sign of cooling