U.S. stocks retreated on Thursday as the recent U.S. downgrade continue to weigh on market sentiment. The rise in the 10-year bond yields is putting more pressure on the market in the near term after yields approached their highest level since November 2022.
All major U.S. stock indexes closed in the negative territory with the Dow losing 0.19%. In the meantime, the S&P500 dropped 0.25% posting the third consecutive day of losses while the Nasdaq composite fell 0.1%. On the back of the recent downside correction in U.S. stocks, the CBOE volatility index known as the “Fear Index” has jumped to its highest level in two months.
Looking at today’s important economic releases, the focus will be on the U.S. Non-Farm payrolls which are expected to come at 205K compared to 209K registered previously. In the meantime, the average hourly earnings are due to fall from 0.4% to 0.3% while the unemployment rate is likely to remain unchanged at 3.6%.