LIVE MARKETS-Wall Street slides for third day as rate cut bets ease
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WALL STREET SLIDES FOR THIRD DAY AS RATE CUT BETS EASE
Wall Street's main indexes appear set to slide for a third straight session on Thursday, retreating from record highs as investors dialed back expectations for a rate cut next month following a string of upbeat economic data and fresh commentary from Federal Reserve officials.
Revised figures showed the U.S. economy grew faster than previously thought in the second quarter, pumped up by a decline in imports and a pickup in consumer spending. Separately, new orders for key U.S.-manufactured capital goods unexpectedly increased in August.
The data arrives ahead of Friday's release of the Personal Consumption Expenditures (PCE) index, a key inflation gauge that could offer further insight into the Fed's policy outlook.
Meanwhile, Federal Reserve Bank of Chicago President Austan Goolsbee said he was not inclined to do a lot more policy easing while inflation is above target and moving the wrong way.
Traders currently see a 83.4% chance of a 25 bps interest rate cut next month, down from 91.9% expected a day ago, according to CME's FedWatch Tool.
The Nasdaq Composite .IXIC dropped about 1%, the S&P 500 .SPX shed 0.7%, while the Dow .DJI fell 0.3%.
Investors appetite for U.S. Treasuries also waned, with the 10-year benchmark U.S. Treasury yield US10YT=RR hitting the highest in three weeks at 4.195%.
Among sectors, consumer discretionary .SPLRCD fell the most, led by a 23% slump in shares of CarMax KMX.N. The used-car retailer reported a fall in second-quarter profit on softening demand in U.S. pre-owned vehicle market.
Real Estate .SPLRCR, energy <.SPNY and consumer staples .SPLRCS were in the green.
Here's a market snapshot as of 10:03 a.m. ET:
(Medha Singh)
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EARLIER ON LIVE MARKETS:
RETAIL INVESTORS HOLD STEADY AS WALL STREET CLIMBS CLICK HERE
THE AI INVESTMENT THEME: RISKS LOOM, BUT NOT A BUBBLE CLICK HERE
CITI ON EU AUTOS: 'NO SECTOR IS EVER UNINVESTABLE' CLICK HERE
EUROPEAN SHARES SOFT, REMAIN IN NARROW RANGE CLICK HERE
EUROPE BEFORE THE BELL: FUTURES STEADY, MARKETS AWAIT CATALYST CLICK HERE
STOCKS TAKE A BREATHER CLICK HERE
Early Trade snapshot Sept 25
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