NEW YORK: Wall Street stocks were back in the red early Thursday after the previous day’s reprieve amid volatility in the bond market and worries over further central bank interest rate hikes.
Thursday’s economic reports included data showing a drop in weekly US jobless claims that point to a strong labor market likely to keep the Federal Reserve focused on its current policy of countering inflation.
Wall Street bounces back as Treasury yields dip
US equities, which have fallen most of the last six weeks, enjoyed a rare up day on Wednesday after a bond market intervention by the Bank of England pressured bond yields in both the United States and Britain.
But yields were higher in both countries for 10-year bonds, as UK Prime Minister Liz Truss doubled down on a controversial tax cut policy that has rattled markets.
About 25 minutes into trading, the Dow Jones Industrial Average was down 1.5 percent at 29,228.10.
The broad-based S&P 500 fell 1.9 percent to 3,647.75, while the tech-rich Nasdaq Composite Index tumbled 2.5 percent to 10,770.55.
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