Stocks slipped back on early gains to close lower for the fourth consecutive session as investors continued to worry about the Fed’s extended interest rate hike campaign.
Wednesday’s downturn came after Cleveland Fed President Loretta Meester said during a speech this morning in Dayton, Ohio, “It’s too early to say inflation has peaked.” Meester, a voting member of the Federal Open Market Committee (FOMC), added that she does not expect any rate cuts this year or next.
Wall Street also got another reading of the labor market, as the ADP employment report released this morning estimated that the US added less-than-expected 132,000 private sector jobs in August, down from July’s reading of 270,000. This comes ahead of Friday’s Nonfarm Payrolls report – the last major check on employment ahead of the Federal Reserve’s September meeting.
“That’s how it starts,” says Edward Moya, chief market strategist at currency data provider OANDA. “The labor market is cooling as private payrolls clearly showed a more conservative pace of hiring. The new ADP methodology was in place and showed job growth slowing for the second month in a row as companies added the fewest number of jobs since early 2021.”
Friday’s jobs report is likely to continue that narrative. The consensus estimate is 300,000 jobs, compared to 528,000 new jobs added in July. “The slower pace of hiring continues to give the Fed the green light for further sharp rate increases over the next two FOMC meetings,” Moya adds.
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At the conclusion of the day, Nasdaq Composite It was down 0.6% at 11816, with S&P 500 . Index (-0.8% at 3955) and Dow Jones Industrial Average (-0.9% at 31,510) closed lower. The three indices ended August with monthly losses of over 4%.
Other news in the stock market today:
- beanie hat Contact 2000 It fell 0.5% to 1,846.
- US crude futures contracts It fell 2.3% to end at $89.55 a barrel, bringing its monthly decline to 9.2%. This was the third consecutive monthly drop in oil prices, and the longest such streak since early 2020.
- gold futures contracts It ended the day 0.6% lower at $1,726.20 an ounce and ended the month down 3.1%. This was the fifth consecutive monthly decline in gold prices, and the longest losing streak since 2018.
- Bitcoin It rose 1.3% to $20,202.29. (Bitcoin is traded 24 hours a day; prices listed here are as of 4pm)
- bed bath behind (BBBY) fell 21.3% after the home goods retailer disclosed a strategic update, which includes plans to float 12 million common shares, close nearly 150 underperforming stores and a round of layoffs. BBBY also said it’s paused store remodeling and updates for the remainder of its fiscal year as it looks to cut capital expenditures to about $250 million from $400 million. Even with the day’s decline, meme stock ended the month up 90%.
- Sent social media inventory cost cutting plans Explode, Explode (Explode, Explode, +9.7%) higher today. Last night, parent company Snapchat revealed a restructuring plan that includes cutting nearly 20% of its workforce and terminating several projects including its lineup of premium Snap Originals offerings. “We are restructuring our business to focus more on our three strategic priorities: community growth, revenue growth, and augmented reality,” CEO Evan Spiegel said in a note. This announcement comes just weeks after her Snap was posted Weakest quarter in revenue growth ever.
Check out these cheap stocks under $10
It would be wise for investors to remain vigil a little longer. “September and October are traditionally dangerous months for the market,” says Anthony Denyer, CEO of trading platform Webull. “So, people should expect choppy waters. Investors obviously need to watch economic indicators. Is inflation going up or down? Will GDP growth be negative in the third quarter, confirming that we are in a recession? Will the labor market start to cool down? turning off?”
We have used this space before to mention ways in which investors can strengthen their portfolios against volatility risks. This includes focusing on traditional safety games such as Services And the Consumer Goods Inventoryor sharpened in low volatility stocks.
However, some investors prefer the thrill of a roller coaster ride – and what better way to experience the thrill than with cheap stocks. Many people avoid low-priced stocks because they are too risky and volatile, but others value the affordability factor and their ability to return significant gains in a short time. Here, we have compiled a list of 10 cheap stocks under $10Each has something to offer to investors. But buyer beware: As fast as these low-priced stocks can go up, they can go down. Don’t invest more than you can afford to lose.