Highlights
Equities edged down Thursday with sentiment hurt by weak economic data, bearish Federal Reserve comments, and selloffs in Tesla and AT&T. The Dow industrials eased by 0.3 percent, the S&P 500 declined 0.6 percent, and the Nasdaq fell 0.8 percent.
US Treasury yields and oil prices dropped while the dollar rose. Among sectors, worst performers included consumer discretionary, communications services, energy, materials, real estate, and health care. Holding up best were industrials, utilities, and consumer staples.
News of a surprisingly large drop in the Philadelphia Fed's manufacturing index -- to levels last seen during major downturns -- fueled recession talk. Meanwhile, New York Fed President John Williams and Cleveland Fed President Loretta Mester stuck closely to the Fed script that more work needs to be done to tame inflation, and that it is too soon to assess the impact of recent banking troubles on the economy.
Sentiment took a hit from losses in Tesla shares after an earnings miss amid price cuts. Tesla's discounting weighed on other automakers, which are expected to cut prices to remain competitive. AT&T was another big loser after mixed results and a revenues miss.
US Treasury yields and oil prices dropped while the dollar rose. Among sectors, worst performers included consumer discretionary, communications services, energy, materials, real estate, and health care. Holding up best were industrials, utilities, and consumer staples.
News of a surprisingly large drop in the Philadelphia Fed's manufacturing index -- to levels last seen during major downturns -- fueled recession talk. Meanwhile, New York Fed President John Williams and Cleveland Fed President Loretta Mester stuck closely to the Fed script that more work needs to be done to tame inflation, and that it is too soon to assess the impact of recent banking troubles on the economy.
Sentiment took a hit from losses in Tesla shares after an earnings miss amid price cuts. Tesla's discounting weighed on other automakers, which are expected to cut prices to remain competitive. AT&T was another big loser after mixed results and a revenues miss.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
