U.S. stocks tumbled into the final hour of a back-and-forth session Thursday as a flurry of corporate headlines held investor attention over any moves from the major averages.
The benchmark S&P 500 dropped 1%, while the Dow Jones Industrial Average shed 130 points, or about 0.4%. The technology-heavy Nasdaq Composite led the way down, falling 1.3%. The moves come after a modest rebound on Wednesday from the stock market’s worst day since June 2020.
On the corporate side, “buy now, pay later” companies were closely-watched amid news the U.S. Consumer Financial Protection Bureau (CFPB) will start regulating the delayed payment industry over concerns their offerings financially harm consumers. Shares of Affirm (AFRM), a leader in the space, fell more than 3%.
Elsewhere, Adobe (ADBE) announced plans for a $20 billion acquisition of online design startup Figma in order to expand its lineup of hybrid-work-friendly platforms. Shares of Adobe tanked more than 13%.
In economic data, initial jobless claims fell for a fifth-straight week to the lowest reading since May. Filings for first-time unemployment insurance totaled 213,000 in the week ended Sept. 10 from 222,000 in the prior week, the Labor Department said Thursday. Economists called for 227,000 claims, according to consensus estimates compiled by Bloomberg.
Meanwhile, data from the Commerce Department showed consumers kept up spending in August despite continued pressures from inflation. Retail sales unexpectedly increased 0.3% last month after a downwardly revised 0.4% decline in July.
Market information is reflected in the glasses of trader as they work on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., September 13, 2022. REUTERS/Andrew Kelly
In the bond market, the benchmark U.S. 10-year Treasury note climbed above 3.45%, and the 2-year Treasury teetered past 3.8% after hitting a 15-year high on the heels of shock August inflation data earlier this week.
Last month’s Consumer Price Index (CPI) showed prices rose a more-than-expected 8.3% over last year, triggering a…