Wall St drops as tight labor market, Fed officials' view fan rate fears

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Wall Street's main indexes were in the red on Thursday as fresh evidence of a tight labor market and hawkish comments from policymakers deepened fears of elevated interest rates for longer than expected.

While a strong labor market would often be welcomed as a sign of economic strength investors currently see it as a key reason for the Federal Reserve to keep interest rates high.

"It's very clear that good news on the labor market means bad news for the stock market. Data is showing that the labor market is very resilient," said Anthony Saglimbene, chief market strategist at Ameriprise in Tory Michigan. "As long as the labor market is resilient, the Federal Reserve has to continue to tighten financial conditions to bring inflation down," said that strategist who expects investors to be keenly focused on wage inflation in Friday's jobs report.

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