The number of Americans filing for unemployment benefits unexpectedly fell by 1,000 last week to a seasonally adjusted 194,000, according to the Department of Labor. This was below economist forecasts for claims of 200,000.
“We’ve had a trend of strong data,” said Michael O’Rourke, chief market strategist at JonesTrading. “The PPI was the latest, the straw that broke the camel’s back, making investors think we should be concerned. Then 15 minutes later Meister came out and said she saw a compelling case for 50 basis points rate hike at the meeting earlier this month.
The Dow Jones Industrial Average fell 431.2 points, or 1.26%, to 33,696.85, the S&P 500 lost 57.19 points, or 1.38%, to 4,090.41, and the Nasdaq Composite dropped 214.76 points, or 1.78%, to 11,855.83.