Why are markets turning red on Thursday as jobless claims increase, gold rallies, and oil plummets?

Wall Street experienced a decline as investors analyzed the latest economic data, which showed an increase in jobless claims and a cautious consumer outlook from Walmart. Treasury yields fell, erasing the gains from the previous day. Jobless claims exceeded expectations, and import and export prices were lower than anticipated, raising concerns about an economic slowdown. Money markets have completely ruled out the possibility of a Federal Reserve interest rate hike and are now predicting four rate cuts in 2024. Oil prices dropped 4.8%, leading to further declines in energy stocks, while precious metals performed well, resulting in gains for mining companies. The worst-performing industry was the VanEck Oil Services ETF, which fell 4.4%, while the best-performing industry was the VanEck Gold Miners ETF, which rallied nearly 2%. The S&P 500, Nasdaq 100, and Dow Jones Industrial Average all saw slight declines, while small caps underperformed. Cisco Systems, Palo Alto Networks, NetEase, and Alibaba Group are among the companies that saw decreases in stock prices following their quarterly results. Commodity markets saw a decline in crude oil prices, while treasuries rallied and the dollar slightly weakened. Gold and silver prices rose, while Bitcoin fell. European equity indexes had a mixed session.