Stock Market Today: Indexes Drop on Kashkari Rate-Cut Signal, Oil Hits $90

June 2024 ยท 2 minute read

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US stocks closed sharply lower on Thursday, shedding earlier gains following new comments from a Federal Reserve officer dented hopes of rate cuts this year, and ahead of Friday's jobs report.

Neel Kashkari, President of the Federal Reserve Bank of Minneapolis, said during a LinkedIn event that interest-rate reductions might not be necessary in 2024 if inflation stagnates, particularly if the economy continues to demonstrate strength.

"If we continue to see inflation moving sideways, then that would make me question whether we needed to do those rate cuts at all," he said, adding that he's waiting for clearer signs of price progress towards the Fed's 2% target before considering any cuts to borrowing costs.

Meanwhile, Brent crude rose as much as 1%, breaching $90 a barrel for the first time since October, following the OPEC+ production cuts, robust demand and escalated geopolitical risks.

Thursday's jobless claims hit a two-month high, while Wall Street eagerly awaits Friday's non-farm payroll and unemployment data for a clearer picture of the current employment outlook.

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Here's where US indexes stood at the 4 p.m. closing bell on Thursday: 

Here's what else happened today: 

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In commodities, bonds, and crypto: 

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