US stocks fall as Fed official talks tough
Wall Street stocks fell again on Thursday amid lingering worries over a recession as a top Federal Reserve official pledged a tough line on inflation. Major US indices were in the red the entire session after losing more than one percent on Wednesday, following lacklustre retail sales data that underscored the risk of a downturn in the world's biggest economy. Data showing lower-than-expected jobless claims indicated that "despite all the big-tech post-pandemic layoffs, the jobs market remains hot," said OANDA's Edward Moya. "The labour market needs to break to allow the Fed to comfortably keep rates on hold," he added. The Dow Jones finished down 0.8 percent at 33,044. The S&P 500 shed 0.8 percent to 3,898, while the Nasdaq dropped 1.0 percent to 10,852. The declines came as the yield on the 10-year US Treasury note pushed higher, underscoring worries that the Fed may not be close to pivoting from its tough stance on inflation. Fed Vice Chair Lael Brainard vowed to "stay the course" on Thursday, according to prepared remarks for an event in Chicago. "Even with the recent moderation, inflation remains high, and policy will need to be sufficiently restrictive for some time," she said. In the past year, the Fed has raised the benchmark lending rate rapidly from around zero to 4.25-4.50 percent. Brainard's latest remarks suggest rates will have to stay high for a while. While markets were broadly lower, petroleum-linked shares advanced as oil prices closed at their highest level since early December. US giants Chevron gained 1.0 percent and ConocoPhillips won 0.9 percent. (AFP)