Stock Market Dips Midday on Oct 5, 2023: Jobless Claims Spark Fed Rate Hike Concerns
On October 5, 2023, U.S. stock markets fell at midday as lower-than-expected weekly jobless claims heightened fears of further Federal Reserve interest rate increases.
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Highlights
- U.S. stock indices including Dow, S&P 500, and Nasdaq declined midday on October 5, 2023, triggered by a smaller rise in weekly jobless claims than anticipated, fueling speculation of additional Fed rate hikes.
- Clorox shares sharply dropped following the company’s warning that an August cyberattack will significantly affect its fiscal Q1 2024 results.
- Lamb Weston Holdings saw its profits double thanks to higher pricing, leading to a notable increase in its stock value.
The U.S. equity markets experienced midday losses after weekly jobless claims data came in below forecasts, intensifying concerns over potential Federal Reserve interest rate hikes ahead of the September employment report scheduled for release tomorrow. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all recorded declines.
Clorox (CLX), a leading cleaning products manufacturer, was the worst-performing stock in the S&P 500 after revealing that a cyberattack in August will substantially impact its financial results for the first quarter of fiscal 2024.
Shares of SolarEdge Technologies (SEDG) dropped following a reduction in target price by Truist Financial analyst Jordan Levy. Levy also downgraded and lowered price targets for Sunrun (RUN) and Sunnova Energy International (NOVA), citing concerns about the adverse effects of elevated interest rates on the solar panel sector.
Veralto (VLTO), an environmental and applied solutions company recently spun off by Danaher (DHR), saw its shares fall for the third consecutive trading day after a minor rebound yesterday.
Lamb Weston Holdings’ stock surged as the company doubled its profits driven by increased pricing, outperforming analyst estimates.
Shares of Merck (MRK) rose after federal regulators announced that its Lagevrio COVID-19 treatment will transition from government-managed distribution to commercial availability starting next month.
Commodity markets saw continued declines with oil and gold futures selling off. The 10-year Treasury yield decreased, and the U.S. dollar weakened against the euro, British pound, and Japanese yen. Cryptocurrency trading showed mixed results across major coins.
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