The S&P 500 (^GSPC) sank more than 1.1%, while the Dow Jones Industrial Average (^DJI) shed 260 points, or 0.8%. The technology-focused Nasdaq Composite ( ^IXIC ) fell 1.4%. The comments of the chairman of the Federal Reserve of St. federal funds charge at least another percentage point. Investors are in for a fruitful day of Fedspeak, with several Fed policymakers scheduled to make public remarks across the country on Thursday. At the center of economic data, claims for unemployment insurance fell last week, remaining near record lows even as a flurry of tech companies reported layoff plans. Initial jobless claims, the most timely snapshot of the labor market, rose to 222,000 for the week ended Nov. 12, down 4,000 from the previous week, Labor Department data showed on Thursday. A recent uptrend in equity markets lost steam on Wednesday after strong October retail data offset hopes of a central bank policy change, rekindled recently by a series of softer inflation reports. Target’s earnings miss also weighed on sentiment in Wednesday’s session, with the company citing inflation and a worsening economic climate ahead of the key holiday shopping season. Other industry peers fared better during the period. Shares of Macy’s ( M ) rose more than 7% at the open after the department store giant beat estimates and raised its full-year profit guidance, boosted by strong demand in its luxury business. Kohl’s ( KSS ), meanwhile, beat earnings expectations but withdrew its full-year outlook due to “significant” macroeconomic headwinds and an unexpected CEO transition. Shares fell nearly 3% to start the session. The story continues Shares of Bath & Body Works ( BBWI ) jumped 26% in early trading after the personal care and home fragrance maker raised its full-year earnings outlook. Retailers Walmart ( WMT ), Lowe’s ( LOW ), Home Depot ( HD ) all beat analysts’ estimates. Elsewhere, as earnings season winds down, Nvidia ( NVDA ) CEO Jensen Huang said strong demand for chips will help the company weather potential financial challenges — an assurance that was enough to offset the losses in its gambling business. Shares fell 1%. Machine maker Cisco Systems ( CSCO ) saw shares rebound 3% after the company gave a positive revenue outlook and said it was cutting its workforce and reducing office space. U.S. Senate Minority Leader Mitch McConnell (R-KY) speaks during a news conference following his re-election as minority leader at the U.S. Capitol in Washington, U.S., November 16, 2022. REUTERS/Elizabeth Frantz Meanwhile in Washington, DC, Republicans won a majority in the House of Representatives on Wednesday, splitting control of the US Congress – a positive sign for investors as stocks have historically performed better during periods of political gridlock. However, strategists have argued that inflation and economic conditions remain the focus of markets. Principal Asset Management Global Strategist Seema Shah said the result should be “largely irrelevant to the broad market outlook”. “Instead, it is historically high inflation, the Fed’s response to inflation and the accompanying risk of a recession, combined with key structural policy decisions, that will determine the direction of the market.” On that front, San Francisco Federal Reserve Bank President Mary Daly said in an interview with CNBC that pausing rates is not currently an option, while indicating that the federal funds rate could reach the 4.75 range %-5.25%. But Federal Reserve Governor Christopher Waller said on Wednesday that recent economic data made him more comfortable with the possibility of a 50 basis point hike at the central bank’s December meeting. Goldman Sachs, while forecasting a 0.50% hike next month, added another quarter hike in May 2023 to its outlook, raising its expectations for the top federal funds rate to 5-5.25%. — Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc Click here for the latest Yahoo Finance platform stock trends Click here for the latest stock market news and in-depth analysis, including the events that move stocks Read the latest financial and business news from Yahoo Finance Download the Yahoo Finance app for Apple or Android Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn and YouTube
