Stocks nosedive as investors fret over signs of U.S. economic slowdown

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Stocks fell sharply after new economic data raised concerns the economy could be slowing faster than expected.

Stocks are tumbling after fresh economic signals raised concerns about the outlook for U.S. growth.The Department of Labor on Thursday released data showing that initial claims for unemployment benefits rose to 249,000 last week, topping analyst forecasts and reaching the highest level since August of 2023. Although layoffs around the country remain modest, some investors worry that the recent jump in jobless claims could be a prelude to a sharper drop in payrolls later this year.

But some Wall Street analysts and economists fret the Fed could be behind the curve in lowering borrowing costs, raising the risk of a hard economic landing. The Fed this week opted to hold rates steady, with Chair Jerome Powell only willing to say that the time to ease monetary policy 'is approaching.' Most forecasters expect the central bank to announce its first rate cut in four years when policy makers meet September 17-18.

 

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