Stock market today: Dow plunges 605 points as fresh economic data clouds outlook for rate cuts

• The Dow fell more than 600 points on Thursday, marking its worst day of 2024.
• Nvidia's solid earnings and guidance boosted its stock but the broader market saw a sharp dip.
• Rate cuts bets faded after services and manufacturing data pointed to still-sticky inflation.

US stocks closed sharply lower on Thursday, with Nvidia's earnings in the rearview and traders dealing with fresh fears of sticky inflation and high interest rates.

Nvidia shares soared on Thursday, a day after reporting earnings results that handily beat estimates and providing solid guidance for the current quarter. The stock rose as much as 12%, ultimately closing 9.3% higher at $1,037.99 per share.

That was the extent of Thursday's bullishness, with the Dow Jones Industrial Average falling 605 points, while the S&P 500 and the Nasdaq Composite retreated from recent record highs. The drop came after new services and manufacturing PMI data topped economists' estimates, hinting at more inflation pressure for the US economy.

In addition, jobless claims were lower than expected, underscoring the continued strength of the labor market. Last week, they came in at 222,000, versus estimates of 220,000.

Thursday's data pressured the outlook for rate cuts later this year. According to the CME FedWatch Tool, market odds of a September cut have dropped below 50%, and June and July rate cuts are essentially off the table.

The 10-year Treasury yield jumped four basis points to 4.475%.

Here's where US indexes stood at the 4:00 p.m. closing bell on Wednesday:

• S&P 500: 5,267.84, down 0.74%
• Dow Jones Industrial Average: 39,065.26, down 1.53% (-605.78 points)
• Nasdaq composite: 16,736.03, down 0.39%

Here's what else happened today:

• Ether could surge 60% after spot ETFs are approved in the US, a trading firm said.
• A sports bettor cashed out a Hail Mary bet that netted him over $80,000 on a $100 bet.
• A global labor shortage will send the tech sector soaring, pushing it to over 50% of the total S&P 500, Fundstrat's Tom Lee said.
• More than half of Americans wrongly believe the US is in a recession, a Harris poll showed.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil slumped 1% to $76.82 a barrel. Brent crude, the international benchmark, dropped 0.75% to $81.30 a barrel.
• Gold fell 2.43% to $2,334.80 per ounce.
• The 10-year Treasury yield rose five basis points to 4.482%.
• Bitcoin dropped 2.63% to $67,306.