US stocks trade mixed as rate fears persist amid signs of tight labor market

Weekly jobless claims unexpectedly declined, and unit labor costs in the second quarter were revised higher.

• US stocks trade mixed on Thursday amid fresh signs the labor market remains tight.
• Weekly jobless claims unexpectedly declined, and second-quarter unit labor costs were revised up.
• That could put more pressure on the Federal Reserve to keep rates higher for longer.

US stocks traded mixed on Thursday, and the Nasdaq dropped for a fourth consecutive day as fresh data indicated that the labor market remains tight.

Weekly jobless claims unexpectedly fell, dropping to 216,000 from 228,000, and defying estimates for an uptick to 234,000. In addition, second-quarter unit labor costs were were revised up to show a gain of 2.2% after an earlier reading put it at 1.6%.

That could add pressure on the Federal Reserve to keep rates higher for longer. According to the CME FedWatch tool, Wall Street is pricing in greater odds that the Fed will lift rates again this year after holding them steady later this month.

By November, investors see a 43.4% probability of a quarter-point increase, up from 37% a week ago and 29% a month ago.

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

• S&P 500: 4,451.20, down 0.32% 

• Dow Jones Industrial Average: 34,500.99, up 0.17% (+57.80 points)

• Nasdaq Composite: 13,748.83, down 0.89%

Here's what else is going on: 

• This indicator shows the stock market is the most overvalued it's been since the dot-com bubble crash.
• Apple stock has lost $191 billion in market cap over the last two days on fears of China's crackdown.
• Billionaire investor Leon Cooperman sees a recession and doesn't expect a new high in stocks for a long time.
• Wall Street firms and retired generals will discuss a hypothetical Chinese invasion of Taiwan. 

In commodities, bonds, and crypto: 

• Oil prices were lower. West Texas Intermediate dipped 0.61% to $87.01 a barrel. Brent crude, the international benchmark, was down 0.58% to $90.07 a barrel.
• Gold was essentially flat at $1,944 per ounce.
• The 10-year Treasury yield ticked down 2.6 basis points to 4.264%
• Bitcoin rose 0.8% to $25,868.