Dow loses grip on 35,000 and touches 2-week low as stock market comes under pressure Wednesday

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Dow industrials skid to lowest level in two weeks after surrendering early gain

U.S. equity indexes traded lower late Wednesday morning, and the Dow industrials hit their lowest level in two weeks, as the broader market was weighed by selling in the information technology sector.

What’s driving the market? Investors were wrestling with markets that are relatively lightly traded, following the Labor Day holiday, where markets were closed on Monday, and the end of Rosh Hashana, which concludes at sunset on Wednesday. A clutch of Wall Street banks, including Goldman Sachs, have cut U.S. growth targets in the wake of weaker-than-expected jobs figures.

“There is plenty of demand for workers and there are more job openings than there are unemployed workers,” Bullard told the FT. Getting the two “matched up” will contribute to a “very strong” labor market headed into 2022, he said. Meanwhile, job openings rose to a record 10.9 million in July, the Labor Department said Wednesday, marking the fifth straight all-time monthly high and exceeding forecasts for a rise of 10 million. Job hires, however, slipped by 160,000 to 6.7 million in July. Separations rose 174,000 to 5.8 million.

“We favor a global allocation, with an overweight to international developed equity. Value and small cap equities, with a focus on quality companies, should continue to thrive,” the strategist wrote.Treasury Secretary Janet Yellen said in a letter to congressional leaders Wednesday that Treasury could run out of room next month to keep paying the government’s bills unless Congress steps in to suspend or raise the federal borrowing limit.

 

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