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US markets end mostly lower ahead of fed chairman Powell's speech

23 Aug 2019 Evaluate

The US markets ended mostly lower on Thursday as investors turned cautious ahead of a widely anticipated speech by the Federal Reserve chairman. Traders hope for a better read on Fed policy Friday, when Chairman Jerome Powell is scheduled to speak at the central bank's annual conference in Jackson Hole, Wyoming. The choppy trading on markets came amid another inversion of the yield curve, with the yield on the two-year note briefly dropping below the yield on the ten-year note. The yield curve inversion, an indicator of a looming recession, came after the minutes of the Federal Reserve's latest monetary policy meeting failed to provide much clarity about the outlook for interest rates. The minutes said the Fed intends to remain flexible regarding future changes to rates, with members planning to pay close attention to the implications of incoming data for the economic outlook.

On the economic front, first-time claims for US unemployment benefits fell by much more than expected in the week ended August 17, according to a report released by the Labor Department. The report said initial jobless claims dropped to 209,000, a decrease of 12,000 from the previous week's revised level of 221,000. Street had expected jobless claims to dip to 216,000 from the 220,000 originally reported for the previous week. Meanwhile, the Labor Department said the less volatile four-week moving average inched up to 214,500, an increase of 500 from the previous week's revised average of 214,000. Besides, a report released by the Conference Board showed its reading on leading US economic indicators rose by much more than anticipated in the month of July. The Conference Board said its leading economic index climbed by 0.5 percent in July after edging down by 0.1 percent in both May and June.

Nasdaq declined 28.82 points or 0.36 percent to 7991.39 and S&P 500 was down by 1.48 points or 0.05 percent to 2922.95, while Dow Jones Industrial Average gained 49.51 points or 0.19 percent to 26252.24.

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