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Stocks sold off Thursday, with the Dow Jones Industrial Average tumbling nearly 500 points, as investors’ fears over a recession surfaced.
The blue-chip index dumped 494.82 points, or 1.2%, to 40,347.97.
The S&P 500 index slid 75.62 points, or 1.4%, to 5,446.68.
The NASDAQ fell 405.26 points, or 2.3%, to 17,194.15.
Stocks that would suffer the most under a recession were among the biggest losers during the day’s trading session, including JPMorgan Chase, which lost 2%, and Boeing, which fell more than 5%.
Stocks began the day on a high note, however, as Meta Platforms rallied more than 4% on stronger-than-expected second-quarter results and upbeat guidance. But Meta was one of the few stocks in the green as the trading day went on.
Even Big Tech stocks such as Nvidia were feeling the pain with the artificial intelligence chip leader off 8% as investors overall may be taking some chips off the table into what could be a more volatile time for the market with a November election around the corner. The S&P 500 is up 14% for the year still, coming off its eighth positive month in the last nine in July.
Those gains came as Federal Reserve Chair Jerome Powell signaled the central bank could cut at its next meeting if the data continues supporting the narrative that inflation is easing. The Fed held interest rates steady.
Initial jobless claims rose to 249,000 last week, higher than a Dow Jones forecast of 235,000 and the most since August 2023. The ISM manufacturing index came in at 46.8%, worse than expected and a signal of economic contraction.
Prices for the 10-year Treasury gained ground, with yields falling to 3.97% from Wednesday’s 4.06%. Treasury prices and yields move in opposite directions.
Oil prices wilted 96 cents at $76.95 U.S. a barrel.
Gold prices shone brighter $13.70 to $2,489.20.
