US equities dropped at the open, poised to snap a four-session winning streak, as investors continue to grapple with a lack of US economic data despite the end of the government shutdown.
The S&P 500 Index opened 0.8% lower, dragged down by declines in the communications and tech sectors. Walt Disney Co. was the worst-performing stock in the index, falling as fiscal fourth-quarter revenue missed estimates and said film studio expenses will weigh on results.
The tech-heavy Nasdaq 100 slipped 1.2% at the open, while the blue-chip Dow Jones Industrial Average fell 0.2% after closing above 48,000 points for the first time on Wednesday.
The government re-opening is a “relief” for markets, said Carol Schleif, chief market strategist at BMO Private Wealth. “We would not be surprised to see some market chop over the coming weeks as the government gears and economic data presses get turning again.”
Jobless claims, an inflation reading and real average earnings — all expected Thursday morning — are still delayed and unlikely to be released, according to the White House. “Investors continue to grapple with the US data vacuum” Scotiabank strategists led by Hugo Ste-Marie wrote in a note.
Thursday’s move lower comes as trader attention shifts to the next Federal Reserve meeting in December, with traders trimming bets the central bank will cut. Boston Fed President Susan Collins said Wednesday she favored holding interest rates steady “for some time to balance the inflation and employment risks.” Atlanta Fed President Raphael Bostic also said inflation remains a clearer risk to the US economy.
