S&P 500 futures fell Thursday as renewed concern swirled on Wall Street over the course of the Federal Reserve’s interest rate policy, and whether policymakers will enact another hike this year. Futures tied to the broader market index lost 0.8%, while Nasdaq 100 futures declined plunged 1.3%. Dow Jones Industrial Average futures slipped 100 points. Apple shares dropped nearly 4% before the bell on a Bloomberg News report that China’s looking to broaden a ban on the use of iPhones in state-owned companies and agencies. A series of economic data Thursday — including fewer-than-expected jobless claims — contributed to fears that the still strong labor market may make the Federal Reserve think twice about relaxing its tight monetary policy. Jobless claims came in at 216,000, versus the 230,000 expected by Dow Jones, while labor costs rose more than anticipated. Traders also combed through the latest corporate earnings reports. C3.ai plunged more than 9% after reporting lower-than-expected gross margin in the recent quarter, while ChargePoint Holdings plunged about 11% after missing revenue estimates. Major U.S. stock benchmarks are coming off a losing session as higher Treasury yields pressured tech stocks and heightened investor worry that the Federal Reserve will use recent stronger-than-expected economic data to justify additional hikes. “Given the data, the Fed will most likely deliver a hawkish pause at the next meeting,” said Jeffrey Roach, chief economist at LPL Financial. “The hard data is not yet convincing enough to establish strong views about the subsequent meetings. Investors should still find opportunities in the market but it could be a bumpy ride.” While 93% of interest rate traders foresee no change at September’s Federal Open Market Committee meeting, expectations of an additional interest rate hike at the November meeting rose above 40%, according to the CME FedWatch tool. U.S. Treasury yields were little changed Thursday as investors assessed the possibility of further rate hikes following economic data that suggested ongoing inflationary pressures and strength in the labor market. The yield on the 10-year Treasury was flat at 4.296%. The yield on the 2-year Treasury hovered at 5.027%. Asia-Pacific markets were mostly lower on Thursday, following a sell off on Wall Street and as investors assess trade data from China and Australia. Chinese imports and exports fell 7.3% and 8.8% year on year, respectively, less than the 9% and 9.2% drops forecasted by a poll of economists by Reuters. In Australia, the S&P/ASX 200 slid 1.19% and closed at 7,171, recording losses for a third straight day. Japan’s Nikkei 225 fell 0.75% after eight straight days of gains and ended at 32,991.08, while the Topix closed down 0.38% at 2,383.38. South Korea’s Kospi saw a 0.59% loss and ended at 2,548.26, marking three straight days of losses, while the Kosdaq was 1.26% lower at 906.36. Hong Kong’s Hang Seng index shed 1.37%, while mainland Chinese markets were lower, with the CSI 300 down by 1.4% and finishing at 3,758.47. Oil prices eased on Thursday as worries over demand due to a seasonal slowdown during winter and an uncertain economic outlook for China outweighed expectations of tighter supplies from extended production cuts in Saudi Arabia and Russia. Brent crude futures fell 37 cents to $90.23 a barrel, after a nine-session winning streak. U.S. West Texas Intermediate crude (WTI) futures fell 43 cents to $87.11 a barrel after seven sessions of gains. Gold prices edged higher on Thursday, as a slight pullback in Treasury yields offered some respite from a robust dollar, while investors looked forward to more U.S. economic data to gauge the outlook for interest rates. Spot gold was up 0.3% at $1,922.43 per ounce, after hitting a one-week low on Wednesday. U.S. gold futures were up 0.1% at $1,946.7.
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