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Tuesday, October 4, 2022
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Stock Market News Today: Inflation-Induced Decline Continues

  • US stocks closed lower on Thursday, extending their inflation-induced decline that kicked off with Tuesday’s plunge.
  • Investors are now keenly focused on what the Fed will do with interest rates at next week’s meeting of the FOMC. 
  • Jobless claims fell for a fifth straight week to 213,000, below economist estimates for 227,000.

US stocks closed lower on Thursday, extending their inflation-induced decline that started with Tuesday’s drop of over 4% in the S&P 500.

A hotter-than-expected August CPI inflation report has now shifted investor focus towards what the Federal Reserve will do with interest rates at next weeks Federal Open Market Committee meeting. Most investors currently expect another outsized 75 basis point interest rate hike, but some think the Fed should raise rates by a full 100 basis points to tame inflation. 

Stocks were briefly higher in early Thursday trades after weekly jobless claims fell for a fifth straight week last week to 213,000. That’s below economist estimates for 227,000 in jobless claims, and it’s a sign that the labor market remains strong as businesses look to fill empty positions.

Here’s where US indexes stood at the 4:00 p.m. ET close on Thursday:

Here’s what else is happening today:

In commodities:

  • West Texas Intermediate crude oil fell 3.57% to $85.32 per barrel. Brent crude, oil’s international benchmark, dropped 3.29% to $91.00.
  • Gold fell 2.14% to $1,672.50 per ounce. The yield on the 10-year Treasury rose 5 basis points to 3.46%.
  • Bitcoin fell 1.14% to $19,796. Ether fell 6.50% to $1,502.   

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