Levi Strauss (LEVI, Financial) experiences a rise in stock value following an upward revision of its profit expectations for the fiscal year.
The number of weekly unemployment claims saw a larger increase than was anticipated.
Market indices witnessed a decline with the Dow Jones Industrial Average dropping by 0.7%, the S&P 500 by 0.4%, and the Nasdaq Composite by 0.3%.
U.S. equities took a downturn during the afternoon session on Thursday, as market participants digested remarks from Federal Reserve officials and evaluated the likelihood of interest rate reductions within the year.
Minneapolis Federal Reserve President Neel Kashkari expressed that he had anticipated two rate cuts for the current year during the Fed's last meeting. However, he noted that if inflation remains subdued, there might not be a need for any rate cuts this year.
Richmond Federal Reserve President Thomas Barkin remarked that the Fed could afford to wait for more clarity on inflation trends before considering rate reductions.
Earlier gains in the stock market were spurred by U.S. unemployment data, which bolstered expectations for potential rate cuts. The data revealed a significant uptick in new unemployment benefit claims, surpassing forecasts.
Oliver Pursche, a senior vice president at Wealthspire Advisors, mentioned that while lower interest rates are desirable, the current economic situation does not necessitate them, indicating stability in the present conditions.
The Dow Jones Industrial Average fell by 286.27 points to 38,840.87, the S&P 500 decreased by 22.46 points to 5,189.03, and the Nasdaq Composite saw a reduction of 48.71 points, ending at 16,228.75.
Investors are keenly awaiting the U.S. employment report for March, due out on Friday, for further insights into the labor market and inflation trends. Expectations are set for the nonfarm payrolls to drop to 200,000 from February's 275,000, with the unemployment rate projected to hold steady at 3.9%.
In a positive development, Levi Strauss (LEVI, Financial) announced an increase in its yearly profit forecast, attributing the adjustment to cost-saving initiatives and reduced discounting practices.
