Stocks opened higher Thursday after data from the Labor Department showed that weekly jobless claims rose last week. Earlier this week, Federal Reserve Chair Jerome Powell warned that the central bank is prepared to issue more rate hikes should economic data continue to come in strong.
But the enthusiasm was short-lived, with the major benchmarks turning lower in afternoon trading as investors reduced risk ahead of tomorrow's highly anticipated February jobs report.
Taking a quick look at today's economic data shows initial claims for unemployment benefits jumped by 21,000 to 211,000 last week, the most since the week ending Dec. 24. The four-week moving average rose to 197,000 from 193,000 in the week prior, its highest level since late January.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Next up is the monthly jobs report, slated for release ahead of tomorrow's open. Jan Hatzius, chief economist and head of research at Goldman Sachs, believes the U.S. added an above-consensus 250,000 new jobs in February. "Job growth tends to remain strong in February when the labor market is tight – we believe because some firms front-load spring hiring in anticipation of spring labor shortages – and all four Big Data employment indicators we track were indeed strong in the month," Hatzius says.
The financial sector was the biggest decliner today, shedding 4.1% after several bank stocks suffered significant losses. Shares of Silvergate Capital (SI) slumped 42.0% after the California-based financial firm said it is shutting down operations and liquidating assets at its subsidiary, Silvergate Bank. The lender, which offered a real-time payments system that cryptocurrency clients could use for quick currency transactions, could not escape the chaos enveloping the digital asset space – in particular the collapse of crypto exchange FTX.
However, SVB Financial Group (SIVB) had an even worse day than Silvergate stock, shedding more than 60% of its value. Last night, the financial services company said it will take a $2 billion charge due to the sale of Treasuries and other assets. SIVB also said it will sell around $1.25 billion of common stock and $500 million of depositary shares. In reaction, Moody's downgraded the credit rating for both SVB and its subsidiary, Silicon Valley Bank, due to "a deterioration in the bank's funding, liquidity and profitability."
As for the major indexes, the Dow Jones Industrial Average fell 1.7% to 32,254, the S&P 500 gave back 1.9% to 3,918, and the Nasdaq Composite shed 2.1% to 11,338.
The best stocks to sell or avoid
As we've said many times in this space, investing is a marathon, not a sprint. This is often why we look at the best stocks to buy or the best ETFs to buy from all corners of the market, because they provide investors with solid long-term opportunities. For instance, we recently updated our list of the best mid-cap stocks to buy, given they are considered the "sweet spot" of investing due to their ability to provide both stability and growth potential. And for income investors, we continually update this list of the Dividend Aristocrats – the 67 best dividend stocks for income growth.
But it's also good to take the pulse on positions that could be worth removing from your portfolio. Maybe a stock has a history of underperforming or the company is running up against a tough business environment. Whatever the reason, there are times when it's just better to cut a stock loose. One place to find red flags is by looking at analyst ratings. Sell recommendations are rare on Wall Street, but these are the top five stocks to sell or avoid right now, according to the pros.
-
Are Tariffs and the ‘Pumpkin Spice Tax’ Coming for Your Fall Coffee Budget?Food Taxes Inflation pressures, tariffs, and talk of the so-called 'pumpkin spice tax' have some wondering about rising coffee prices.
-
Can President Trump Fire Fed Governor Lisa Cook?Markets hate uncertainty, especially when it comes to monetary policy and interest rates, and questions about the Fed are compounding.
-
Can President Trump Fire Fed Governor Lisa Cook?
Markets hate uncertainty, especially when it comes to monetary policy and interest rates, and questions about the Fed are compounding.
-
Stocks Struggle to Start Nvidia Week: Stock Market TodayAnother important week for the stock market starts on a risk-off note.
-
Nvidia Earnings: Live Updates and Commentary August 2025Nvidia earnings are just one day away, and market participants are zeroed in on the AI bellwether's quarterly results.
-
Dow Rips 846 Points to New All-Time High: Stock Market TodayFed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
-
S&P 500 Extends Losing Streak Ahead of Powell Speech: Stock Market TodayStocks continued to struggle ahead of Fed Chair Powell's Friday morning speech at Jackson Hole.
-
Powell Signals Rate Cuts in His Jackson Hole Speech. Here's What Wall Street is SayingIn his speech at the Jackson Hole symposium Friday, Fed Chair Jerome Powell said current conditions "may warrant" rate cuts.
-
Tech Sells Off While Trump Stirs the Fed: Stock Market TodayWe've reached another important part of earnings season, though markets remain captivated by the president, the Fed, and interest rate policy.
-
Dow Retreats From a Record High: Stock Market TodayQuietly rising since April, Home Depot stock was conspicuously constructive Tuesday as high-profile tech names dragged equity indexes down.
