US stocks edged lower in morning trading on Wall Street
Thursday as the broader market continued pulling back from a rally earlier in
the week.

The S&P 500 fell 27.58 points or 0.73% to 3,755.70 as
of Eastern time. The benchmark index is still moving towards a 4.8% gain this week
following its best two-day rally since the spring of 2020. The Dow Jones
Industrial Average fell 230 points, or 0.76%, to 30,043.09. The Nasdaq fell 74.34
points or 0.67% to 11,074.30.

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Treasury yields surged and put more pressure on stocks. The
yield on the 10-year Treasury, which helps determine rates for mortgages and other
loans, rose to 3.82% from 3.75% late Wednesday. The yield on the two-year
Treasury, which closely tracks expectations for Federal Reserve action, rose to
4.20% from 4.14% late Monday.

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Wall Street is reviewing the latest data on the jobs
market. According to the US government, more Americans filed for unemployment
benefits last week, the largest number in four months. However, the labor market
remains resilient in the face of persistent inflation and a slowing overall US
economy.

Investors are watching employment data very closely as the Fed
remains determined to hike interest rates to try and control the hottest
inflation in four decades. They are worried that the Fed could go too far with
its rate increases and push the economy into a recession.

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The job market has been a particularly strong segment of an
otherwise slowing economy. Any sign that it’s weakening could impact the Fed’s
future decisions to either remain aggressive or ease up. Government employment
data released on Tuesday indicated that the job market may be cooling. A more
closely watched monthly employment report, for September, will be released on
Friday.

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Analysts expect the government to report that the US
economy added 250,000 jobs last month, significantly below the average of
487,000 per month over the past year, but still a strong number that suggests
the labor market is healthy despite chronic inflation and two consecutive
quarters of US economic contraction.