By Gokhan Ergocun
ISTANBUL (AA) - The New York stock market closed lower Thursday after the release of fresh economic data and a White House warning to brace for mass layoffs if the government shuts down
The Dow lost 0.38%, or 173.96 points, to close at 45,947.32.
The Nasdaq fell 0.5%, or 113.16 points, to close at 22,384.70, while the S&P 500 dropped by 0.5%, or 33.25 points, to 6,604.72.
The Volatility Index (VIX), also known as the "fear index," soared 3.46% to 16.74.
While uncertainty over the Fed’s interest rate cut path persists, economic data overshadowed expectations, driving stocks lower.
The White House budget office is instructing federal agencies to prepare plans to reduce staff for mass firings during a possible government shutdown, specifically targeting employees who work for programs that are not legally required to continue, American news website Politico reported.
The US economy grew by 3.8% in the second quarter of the year, exceeding expectations, driven by strong consumer spending and investment.
Thus, the country's economy achieved its strongest growth performance since the third quarter of 2023.
The number of first-time unemployment benefit applicants also fell to 218,000 in the week ending on Sept. 20, falling short of expectations.
Despite projections of a decline in August, durable goods orders in the US increased by 2.9%, while the goods trade deficit narrowed by 16.8% in August compared to the previous month, falling to $85.5 billion.
Although sales of existing homes in the country decreased by 0.2% in August, they exceeded market expectations.
Strong economic data has weakened optimism that interest rates will be lowered further.