US STOCKS-Wall Street slides for fifth straight day on rate hike jitters

U.S. stock indexes fell for the fifth straight session on Thursday as fresh signs of a tight labor market raised bets in favor of the Federal Reserve's aggressive approach, lifting bond yields and pressuring growth stocks. The weekly jobless claims fell more-than-expected last week and layoffs dropped in August, consistent with strong demand for workers.

U.S. stock indexes fell for the fifth straight session on Thursday as fresh signs of a tight labor market raised bets in favor of the Federal Reserve's aggressive approach, lifting bond yields and pressuring growth stocks.

The weekly jobless claims fell more-than-expected last week and layoffs dropped in August, consistent with strong demand for workers. Investors now await the monthly nonfarm payrolls report on Friday for more evidence on the labor market. As the 10-year Treasury yield rose to its highest level since June 21, heavyweight technology and growth stocks such as Apple Inc, Amazon.com, Tesla Inc and Microsoft Corp fell between 0.3% and 1.8%.

Traders have raised their expectation of a third straight 75 basis points increase in rates in September to 77.1% from 74% despite mixed signals on inflation. Latest data showed a further easing in price pressures, while manufacturing grew steadily in August, thanks to a rebound in employment and new orders.

"The market has its dead eyes on re-testing the June lows. We will see how it goes after Friday's nonfarm payroll report and how things go once we get back into a full week after the Labor Day," said Robert Pavlik, senior portfolio manager at Dakota Wealth Management. "Powell's comments put the realism back into the market... people that have gotten in since the bounce off the lows in June are quickly moving to the sidelines."

The benchmark S&P 500 has dropped 9.6% since hitting a four-month high in August, with much of the losses triggered by Fed Chair Jerome Powell's hawkish view on interest rate hikes. Investors are worried about how much and how long the Fed will raise rates, with Wall Street's main indexes recording their weakest August performance in seven years in the previous session.

At 10:17 a.m. ET, the Dow Jones Industrial Average was down 269.08 points, or 0.85%, at 31,241.35, the S&P 500 was down 44.41 points, or 1.12%, at 3,910.59, and the Nasdaq Composite was down 188.01 points, or 1.59%, at 11,628.20. Boeing Co dipped 4.6% as the planemaker expects its 737 MAX 10 jet to be certified by U.S. regulators next year and the MAX 7 variant by the end of 2022.

Nvidia Corp dropped 8.8% after U.S. officials told the chip designer to stop exporting two top computing chips for artificial intelligence work to China. Advanced Micro Devices Inc slid 5.5% after it was told to stop exporting its top artificial intelligence chip to China.

Qualcomm Inc slipped 4.5% after the UK-based chip firm Arm sued the chipmaker and its recently acquired chip design firm Nuvia Inc for breach of license agreements and trademark infringement. Hormel Foods Corporation fell 6.1% after packaged foods maker cut its full-year profit forecast.

Declining issues outnumbered advancers for a 8.22-to-1 ratio on the NYSE and for a 4.93-to-1 ratio on the Nasdaq. The S&P index recorded one new 52-week highs and 30 new lows, while the Nasdaq recorded nine new highs and 235 new lows.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)