S&P 500 and Dow turn positive after rocky start to September

S&P 500 and Dow turn positive after rocky start to September
S&P 500 and Dow turn positive after rocky start to September

U.S. stocks pared their heavy losses Thursday in the final hour of a volatile session as major averages sought to rebound from their biggest August percentage declines since 2015.

The Dow Jones Industrial Average jumped 150 points after falling nearly 300 points, and the S&P 500 climbed 0.3%, recouping a loss of more than 1%. The Nasdaq was an outlier, capping the day at 0.3% but well off session lows of nearly 2%.

Meanwhile, the benchmark 10-year US Treasury yield hit 3.267%, its highest level since June, as investors brace for more aggressive interest rate hikes from the Federal Reserve further later this month.

A volatile start to September follows four consecutive selling sessions amid renewed fears of tight monetary policy and a possible recession.

In August, the benchmark S&P 500 fell 4.2%, the Dow Jones fell 4.1% and the Nasdaq recorded a monthly loss of 4.6%.

“A soft landing seems pretty unlikely,” Mike Schumacher, head of macro strategy at Wells Fargo, told Yahoo Finance Live. “A lot of things should go incredibly well – the energy situation should improve, which is far from a miracle at this point, COVID should probably be pretty mild if you think of a surge this fall or this l ‘winter.”

Shares of Nvidia (NVDA) were among the biggest movers on Thursday, falling nearly 8% after the chipmaker said US officials ordered the company to halt sales to China of two of its its main computer chips used for artificial intelligence. Nvidia could lose around $400 million in potential sales in China due to the restriction.

Nvidia CEO Jensen Huang makes a point during his keynote address at CES in Las Vegas, Nevada, U.S. January 7, 2018. REUTERS/Rick Wilking

On the commodities side, oil prices extended their downward slide as fears of demand destruction persist. West Texas Intermediate crude oil fell more than 2.5% to $87.21.

The moves in crude oil futures come after the commodity posted its third consecutive monthly decline – the longest losing streak in more than two years. WTI crude fell more than 9% in August, its biggest monthly drop since November.

The story continues

On the economic data front Thursday morning, jobless claims fell for a third week to their lowest level in two months. First jobless claims dropped unexpectedly to 232,000 in the week ended August 27. Economists polled by Bloomberg expected claims to hit 248,000.

Meanwhile, the Commerce Department reported Thursday that spending on new construction projects fell 0.4% in July, matching economists’ estimates. Spending in June fell a revised 0.5% from the previous heavier estimate of a 1.1% drop.

The main event of the week is the Department of Labor’s official report for the month of August, which is scheduled for release at 8:30 a.m. ET Friday morning. Nonfarm payrolls likely rose by 300,000 in August, according to Bloomberg data.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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. Dow become positive after early September hectic

. Dow turn positive rocky start September

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