London Daily

Focus on the big picture.
Thursday, Oct 22, 2026

Wall Street Falls as Pandemic-Era Low in US Jobless Claims Triggers Fed's Taper Fears

Wall Street Falls as Pandemic-Era Low in US Jobless Claims Triggers Fed's Taper Fears

US stocks fell broadly for a fourth day in a row on Thursday after another Federal Reserve official advocated this week for a prompt taper of the central bank’s long-running economic stimulus.

The Dow Jones Industrial Average, the broadest equity barometer on the New York Stock Exchange that lists mostly industrial stocks, settled at 34,879, down 152 points or 0.4 percent on the day. The Dow has lost a cumulative 563 points, or 1.6 percent, over the past four sessions.

The S&P 500, which groups the top 500 US stocks, closed at 4,493, down 21 points, or 0.5 percent. The blue-chip indicator slid by 44 points or almost 1 percent over four trading days.

The Nasdaq Composite Index, which includes stocks of technology giants such as Facebook, Amazon, Apple, Netflix and Google, settled at 15,248, down 38 points, or 0.3 percent. The tech-heavy index slid 126 points, or 0.8 percent, over the past two sessions.

Stocks fell after Labor Department data showed US jobless claims rose by 310,000 last week but remained below the key 400,000 for a sixth straight week to mark a new COVID-19 pandemic-era low.

Wall Street has been under pressure since Wednesday after Federal Reserve Bank of New York President John Williams said it might be appropriate to start tapering this year the central bank’s stimulus for the US economy if inflation remains unbridled and the recovery from the pandemic stays on track.

Federal Reserve Governor Michelle Bowman was the second senior official of the central bank to think so on Thursday, saying US inflationary pressures were in line with the robust demand and constrained supplies in the economy, making a stimulus taper before the end of the year likely appropriate.

Bowman said the United States has achieved "significant progress" on price stability and is "quite close" to achieving its aim of full employment and it was "critical not to draw too many conclusions from a single month's shaky job market data." Ensuring maximum employment and manageable inflation are the Federal Reserve’s two mandates.


The Federal Reserve has been buying $120 billion in bonds and other assets since the COVID-19 outbreak of March 2020 to support the economy. The central bank has also been keeping interest rates at virtually zero levels for the past 18 months.

The Federal Reserve stimulus program is being blamed for aggravating price pressures in the United States, where economic growth for the second quarter of 2021 was estimated at 6.6 percent - above the 3.5 percent decline noted for all of 2020. The central bank itself has projected economic growth at 6.5 percent for all of 2021.

The Federal Reserve’s preferred gauge for inflation - the core Personal Consumption Expenditures (PCE) Index, which excludes volatile food and energy prices - rose 3.6 percent in the year through July, its most since 1991. The PCE Index including energy and food rose 4.2 percent year-on-year. The central bank’s own target for inflation is 2 percent per year.

Newsletter

Related Articles

0:00
0:00
Close
Parliamentary Inquiry Highlights Urgent Need to Address Housing Shortage as Scottish Completions Hit Eleven-Year Low
United Kingdom and Singapore Sign Comprehensive Financial Agreement to Deepen Digital and Sustainable Market Ties
Greggs Announces Plan to Close Four Manufacturing Facilities and Cut Seven Hundred and Forty Jobs
International Monetary Fund Raises United Kingdom Economic Growth Forecast While Warning of Inflationary Pressures
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs Onto Gas to Lower Household Bills
Housebuilding Across Scotland Plummets to Eleven-Year Low Despite Government Pledges to Tackle National Housing Emergency
Greggs Announces Factory Closures Across Northern England and Scotland Affecting Seven Hundred Forty Jobs
United Kingdom and Singapore Conclude Eleventh Financial Dialogue in Singapore to Deepen Cooperation on Digital Finance and Capital Markets
Energy Security and Net Zero Committee Urges Government to Shift Policy Costs to Gas Bills and Tap Windfall Profits to Lower Consumer Prices
British Broadcasting Corporation Announces Major Cost-Cutting Overhaul to Close Linear Broadcast Services for Television Channels BBC Three and BBC Scotland Alongside Digital Radio Station BBC Radio Four Extra
London Capital Markets Face Renewed Scrutiny After High-Profile Offerings Underperform Post-Listing
Green Party Wins Historic First Westminster Parliamentary By-Election in Gorton and Denton
Environment Secretary Emma Reynolds Unveils Sweeping Regulatory Overhaul for English Water Industry
United Kingdom Health Security Agency Confirms Thirty-Four Cases in Kent Meningitis Outbreak
Ministry of Defence Prepares Heat Pump Subsidy Cuts to Fund Urgent Military Modernization
British and European Union Officials Schedule Long-Awaited Bilateral Leaders Summit for November Twentieth
Bank of England Governor Andrew Bailey Urges Strict Fiscal Credibility to Protect British Bond Markets
United Kingdom Inflation Rises to Three Point One Percent Driven by Escalating Fuel Costs
Profit Warnings Among London-Listed Companies Reach Two-Year High Amid Global Energy Shocks
Chancellor John Healey Signals Targeted Tax Changes on Banks and London Corporate Offices Ahead of Budget
British Government Reallocates Twenty-Five Per Cent of International Climate Finance to Global Biodiversity Projects
Initial British Carbon Border Taxes Set to Undercut Parallel European Union Tariffs on Industrial Imports
Whitehall Prepares National Zero-Interest Loan Initiative to Accelerate Domestic Heat Pump and Solar Adoption
European Union Offers British Automakers Access to Hybrid Vehicle Trade Protections Subject to Strict Regulatory Alignment
British Probation Officers Threaten Widespread Industrial Action After Rejecting Five Per Cent Government Pay Offer
Microsoft Abandons Major British Artificial Intelligence Data Centre Citing Severe National Grid Power Constraints
United Kingdom Inflation Accelerates to Three Point Four Per Cent Ahead of Chancellor John Healey's Inaugural Autumn Budget
Surging Cloned Number Plates Severely Complicate Traffic Enforcement and Police Investigations
Mounting Opposition Challenges Planned Rollout of Autonomous Taxis Across London
Influential Think Tank Urges Rejoining European Union to Navigate Geopolitical Crises
Government Review Recommends Slashing Benefits to Fund Youth Employment Initiatives
Senior Minister Shabana Mahmood Seeks New Law Enforcement Pact With European Union
Airbus Executive Warns Britain Risks Losing Crucial Role in European Space Industry
Exorbitant Electricity Costs Push British Steelmakers to Worst Competitive Position in Three Years
British Food and Beverage Exports to European Union Collapse by Over a Third Since Brexit
Up to Twenty English Maternity Units Face Impending Closure Due to Safety and Staffing Crises
Government Declares Severe Drought Across Southern England Following Record Dry Spell
Corporate Profit Warnings Reach Two-Year High Amid Middle East Conflict and Rising Costs
International Monetary Fund Warns Chancellor John Healey Against Proposed Bank Tax Raid
Northern Ireland Secures Favorable Agricultural Export Agreement with European Union
Scottish Government Approves Major Offshore Floating Wind Farm Near Aberdeenshire
High Speed Two Rail Project Faces Three Billion Pound Cost Escalation on Initial Phase
National Health Service Warns of Winter Capacity Crisis Across English Hospitals
Tata Steel Confirms Two Thousand Job Cuts at Port Talbot to Fund Green Transition
Global Microchip Developer Announces Three Billion Pound Semiconductor Plant in Cambridge
United Kingdom Artificial Intelligence Safety Institute Proposes Mandatory Licensing for Generative Models
United Kingdom Commits Additional Long-Range Weapons and Air Defenses to Ukraine
British Chancellor Overhauls Infrastructure Financing to Bypass Borrowing Constraints
Bank of England Holds Benchmark Interest Rate at Four Point Five Percent
First Minister Rhun ap Iorwerth Confirms Constitutional Discussions Over Welsh Independence During Initial Bilateral Call with Prime Minister
×