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A trader works on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Monday, April 23, 2018.
“The current move higher looks to be an adjustment to several months of data that suggested that the US economy has accelerated over the course of 2018. In particular the labor market looks to have tightened considerably, and recent commentary by the FOMC suggests that this has not gone unnoticed,” said Michael Shaoul, chairman and CEO of Marketfield Asset Management.
Shaoul noted rates could go even higher from here. “With nominal growth in the US finally breaking higher and the FOMC conceivably pushing the policy rate up to 3.0% by this time next year a 10 year yield above 3.50% hardly strikes us as outlandish,” he said.
Thursday’s moves come after the Dow hit a record high. The Dow, along with the S&P 500 and Nasdaq, initially moved higher as investors first cheered the strong economic data released Wednesday.
On Thursday, initial jobless claims fell to 207,000, a near 49-year low. The report comes as investors brace for the September jobs report, which is scheduled to be released Friday morning.
Chipmakers fell broadly after Deutsche Bank reduced its 2019 earnings forecasts by an average of 5 percent on eight chip stocks. Micron and Nvidia fell 2.6 percent and 2.2 percent, respectively. Advanced Micro Devices pulled back 2.3 percent.
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