U.S. stocks close lower as rebound rally pauses

NEW YORK, Aug. 20 (Xinhua) -- U.S. stocks ticked lower on Tuesday, following eight consecutive positive sessions for both the S&P 500 and Nasdaq Composite, a streak not seen since late 2023.

The Dow Jones Industrial Average fell by 61.56 points, or 0.15 percent, to 40,834.97. The S&P 500 sank 11.13 points, or 0.20 percent, to 5,597.12. The Nasdaq Composite Index shed 59.83 points, or 0.33 percent, to 17,816.94.

Seven of the 11 primary S&P 500 sectors ended in red, with energy and materials leading the laggards by losing 2.65 percent and 0.38 percent, respectively. Meanwhile, consumer staples and health led the gainers by rising 0.53 percent and 0.37 percent, respectively.

The latest survey from the New York Federal Reserve showed that 28.4 percent of respondents were actively job hunting, the highest percentage since March 2014 and up from 19.4 percent a year ago. This included both unemployed individuals and those currently employed but seeking new opportunities.

These findings, from the New York Fed's Consumer Expectations Labor Market Survey, suggested a deteriorating U.S. economic outlook, even as some economists reduced their recession predictions. Although the unemployment rate was still relatively low at 4.3 percent in July, it had risen from its post-pandemic low of 3.5 percent.

Moreover, job growth in the United States for the year through March was likely significantly lower than initially reported, potentially heightening worries that the Federal Reserve is lagging in its efforts to reduce interest rates.

Economists from Goldman Sachs Group Inc. and Wells Fargo & Co. anticipated that the government's preliminary benchmark revisions, set to be released on Wednesday, will reveal that payroll growth during that period was at least 600,000 jobs weaker than currently estimated.

"While the payroll revisions due Wednesday have long been anticipated by the Fed, this will frame the atmospherics and will underline that the picture of strength in payrolls is not as vigorous as it had appeared in real time," Evercore ISI analysts Krishna Guha and Marco Casiraghi said in a note Monday.

"Markets, having recently experienced a growth scare that led to concerns that the Fed is behind the curve, will be monitoring Wednesday's release of the benchmark revision to see if the market's initial reaction was, in fact, correct," said Quincy Krosby, chief global strategist at LPL Financial.