US stock indices declined as a result of concerns that the Federal Reserve would continue its aggressive rate-hiking cycle which may potentially push the economy into a recession in light of statistics showing a tight job market.
The Labor Department s data revealed an unexpected decline in US weekly unemployment claims demonstrating the labor market s resiliency in an environment with increased interest rates.
The decline in retail sales in December and a decline in inflation in the previous session gave rise to optimism that the Fed would further curtail the magnitude of its interest rate rises next month but the report did not alter those views.
On the other hand, the markets have priced in a 25-basis point rate increase from the US central bank for February and anticipate the terminal rate to be at 4.89% by June.
The Dow Jones Industrial Average and the S&P 500 are currently on track to see their third straight day of losses.
At 12:21 p.m. ET, the Nasdaq Composite was down 109.91 points, the S&P 500 was down 29.38 points and the Dow Jones Industrial Average was down 224.90 points.
Later on Thursday, Netflix Inc. is anticipated to present its weakest quarterly revenue growth. Shares of the firm decreased 1.6%.
On the NYSE and the Nasdaq, declining issues outnumbered advancing issues by a ratio of 2.09 to 1 and 2.10 to 1, respectively.
The Nasdaq posted 28 new highs and 27 new lows, compared to the S&P index s one new 52-week high and two new lows.
