Ella 
Stocks declined and the dollar strengthened on Thursday as investors analyzed new economic data and anticipated a forthcoming decision from the U.S. Federal Reserve regarding interest rate cuts.
All three major U.S. stock indices fell, led by declines in technology shares. The Dow Jones Industrial Average dropped 0.43% to 40,712, the S&P 500 fell 0.89% to 5,570, and the Nasdaq Composite decreased by 1.67% to 17,619.
Minutes from the Federal Reserve’s recent meeting, released on Wednesday, indicated that a “vast majority” of policymakers believe a rate cut in September would be appropriate if economic data align with expectations, reinforcing market predictions.
On Thursday, new data revealed an increase in the number of Americans filing for unemployment benefits, suggesting a gradual cooling of the labor market. Additionally, a slowdown in overall U.S. business activity this month supported the view that the economy is slowing and inflation is easing, potentially allowing the Fed to shift its focus more towards employment. Mortgage rates have already begun to decline, contributing to a stronger-than-expected rebound in existing home sales last month.
Steve Englander, a markets strategist at Standard Chartered Bank, noted that the Fed’s meeting minutes suggest that the central bank is nearing its inflation target and is considering a 50 basis point rate cut. “If they are not announcing that they have won on inflation, they are indicating they expect to achieve it relatively soon,” Englander wrote in a Thursday email.
Following a robust rebound earlier in the month, global stocks fell about 0.6% amid renewed volatility.
