NEW YORK, Aug. 22 (Xinhua) -- U.S. stocks ended lower on Thursday, as investors readied for a speech by Federal Reserve Chair Jerome Powell at the central bank's annual Jackson Hole conference due Friday.
The Dow Jones Industrial Average fell by 177.71 points, or 0.43 percent, to 40,712.78. The S&P 500 sank 50.21 points, or 0.89 percent, to 5,570.64. The Nasdaq Composite Index shed 299.63 points, or 1.67 percent, to 17,619.35.
Eight of the 11 primary S&P 500 sectors ended in red, with technology and consumer discretionary leading the laggards by losing 2.13 percent and 1.87 percent, respectively. Meanwhile, real estate and financials led the gainers by rising 0.56 percent and 0.48 percent, respectively.
Stocks felt downward pressure from rising bond yields on Thursday. Investors were eager for more clarity on future rate policies. According to the Chicago Mercantile Exchange (CME) Group's FedWatch Tool, traders universally expected a rate cut next month, though opinions differed on whether the reduction will be by a quarter or half a percentage point.
"The decision as to whether the Fed will start its policy normalisation cycle with either a 0.25 percent or 0.5 percent rate cut will ultimately be informed by labour market data released in early September," said Simon Dangoor, Goldman Sachs Asset Management's head of fixed-income macro strategies.
Early Thursday morning, the U.S. Labor Department reported 232,000 initial jobless claims for the week ending Aug. 17, slightly up from 228,000 the previous week and aligning with economists' expectations.
This data drew heightened attention as an official revision to payroll figures earlier this week indicated that the labor market -- a crucial factor for policymakers -- may have been cooling earlier than previously believed. Signs of labor market stress could influence the extent of the Fed's upcoming rate cuts, with some hoping for a 0.5 percent reduction. Enditem
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