The Nasdaq lagged major U.S. stock indexes on Thursday as megacaps came under pressure with Treasury yields resuming their upward charge, while investors assessed fresh economic data and awaited Federal Reserve chief Jerome Powell’s remarks.
At 9:41 a.m. ET, the Dow Jones Industrial Average (.DJI) was down 5.50 points, or 0.02%, at 33,544.77, the S&P 500 (.SPX) was down 5.18 points, or 0.12%, at 4,269.33, and the Nasdaq Composite (.IXIC) was down 54.28 points, or 0.41%, at 13,038.57.
Meanwhile, data showed the U.S. economy maintained a fairly strong pace of growth in the second quarter, the government confirmed on Thursday. It also appeared to have gathered momentum this quarter amid a resilient labor market.
“We expect a weakening labor market and mounting headwinds to disposable incomes will drive a sharper slowdown in consumption and the broader economy over the rest of the year,” said Michael Pearce, lead U.S. economist at Oxford Economics.
Pearce added that a sharp slowdown into year-end will keep policymakers on the sidelines, rather than following through with an additional rate hike as planned.