- The Dow Jones fell more than 600 points on Thursday, marking its worst day of 2024.
- Nvidia's strong earnings and guidance boosted its stock, but the broader market saw a sharp decline.
- Bets on rate cuts faded after services and manufacturing data pointed to still-stable inflation.
U.S. stocks closed sharply lower on Thursday, with Nvidia's gains in the past and traders grappling with fresh fears of persistent inflation and high interest rates.
NVIDIA Shares soared on Thursday, a day after reporting earnings results that handily beat estimates and provided strong guidance for the current quarter. The stock rose as much as 12% and ultimately closed 9.3% higher at $1,037.99 per share.
That was the extent of Thursday's optimism, with the Dow Jones Industrial Average falling 605 points, while the S&P 500 and Nasdaq Composite retreated from recent all-time highs. The drop came after new services and manufacturing PMI data beat economists' estimates, hinting at greater inflationary pressure for the U.S. economy.
Additionally, jobless claims were lower than expected, underscoring the continued strength of the labor market. Last week, they reached 222,000, compared to estimates of 220,000.
Thursday's data put pressure on prospects for rate cuts later this year. According to the CME FedWatch ToolThe market odds of a September cut have fallen below 50%, and rate cuts in June and July are essentially off the table.
The 10-year Treasury yield jumped four basis points to 4.475%.
Here's where the US indices stood at the 4:00 pm closing bell on Wednesday:
This is what happened today:
In commodities, bonds and cryptocurrencies:
- West Texas Intermediate Crude oil fell 1% to $76.82 a barrel. Brent CrudeThe international benchmark index fell 0.75% to $81.30 a barrel.
- Gold fell 2.43% to $2,334.80 an ounce.
- The 10-year Treasury yield rose five basis points to 4.482%.
- bitcoin fell 2.63% to $67,306.
