Stocks tumbled on Thursday after strong labor data spurred fears around further Federal Reserve interest rate hikes, reviving concerns about the impact of those hikes on the economy.
The S&P 500 (^GSPC) was down about 0.8%, while the Dow Jones Industrial Average (^DJI) fell 1.08%, or about 370 points. The tech-focused Nasdaq Composite (^IXIC) fell 0.9%.
All three major benchmarks logged losses Wednesday, after surprisingly hawkish minutes from the Fed’s June meeting showed some policymakers were reluctant to back a pause as finally decided. Almost all backed more increases in 2023.
Markets are now seeing an 95% chance of a hike at the Fed’s July meeting, according to the CME FedWatch tool, after fresh data reports Thursday signaled the US labor market is still robust. ADP private-sector payrolls came in well above estimates.
Given stocks have previously faced headwinds from concerns the…
