Wall Street stocks close lower ahead of US long weekend
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Traders working on the floor of the New York Stock Exchange in the US in August.
PHOTO: REUTERS
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NEW YORK – Wall Street stocks fell on Aug 29 heading into a long weekend in the US, with key employment data due next week alongside other indicators of the economy’s health.
The Dow Jones Industrial Average slipped 0.2 per cent to 45,544.88, while the broad-based S&P 500 Index dropped 0.6 per cent to 6,460.26.
The tech-focused Nasdaq Composite Index tumbled 1.2 per cent to 21,455.55.
Investors appeared to be taking in some profits ahead of an extended weekend with the US Labour Day holiday on Sept 1, said Mr Sam Stovall, of CFRA Research.
He added that an inflation measure closely watched by the US Federal Reserve also came in as expected on Aug 29, and was unlikely the catalyst driving markets lower.
But Mr Stovall expects that investors will be keeping a close eye on employment numbers next week, given that the last such report released early August showed the labour market was weaker than expected.
Markets will be watching to see “whether it was an anomaly”, he said.
The payrolls data could have a bearing on the US Federal Reserve’s calculus when policymakers decide if they should lower interest rates during their next meeting in September.
If the labour market worsened suddenly and sharply, the Fed could be inclined to act sooner in cutting rates to boost the economy. AFP
