The US stock market extended its decline on Thursday as investors focused on the release of US NFP jobs data.
The decline in the 10-year US treasury yield unfortunately did not provide any support for stocks to rise.
The US jobless claims report also failed to provide a boost although the reading rose slightly higher than expected slightly shaking investor confidence for the Federal Reserve (Fed) to act aggressively.
Instead, investors are more focused on the NFP data that will be released in the New York session today.
One of the main causes of the widespread decline in the market is US President Joe Biden's proposal to double the share buyback tax by 1%.
Buybacks are an important tool to return capital to investors. If this move is implemented, it will serve as a long-term bearish catalyst for the stock.
The Dow Jones Industrial average fell 543.54 points or 1.66% to close at 32,254.87. While the S&P 500 lost 1.85% to close at 3,918.33, while the Nasdaq fell 1.8% to 11,995.88 in the previous session. The US30 index slipped further at 32,025.60 in the Asian session.
The poor performance in the S&P 500 was caused by a 57% stake in Silicon Valley Bank Financial Group. Nasdaq was also affected by the extensive selling of Chinese shares JD.com and Pinduoduo.
The Dow Jones, meanwhile, headed for annual lows following a sustained decline, with JPMorgan Chase down 5%. Intel is the only stock that recorded significant gains.
