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Stocks fell Thursday after jobs data showed the labor market is still strong despite the Federal Reserve’s interest rate hikes to tame inflation.The Dow Jones Industrial Average fell 339.69 points, or 1.02%, to 32,930.08. It was weighed down by Walgreens, which lost 6.13% after earnings showed a $5.2 billion opioid litigation settlement drove a quarterly loss.The S&P 500 shed 1.16% to close at 3,808.10 and the Nasdaq Composite slipped 1.47% to 10,305.24. Bed, Bath & Beyond shed 29.88% after saying its short on cash and considering bankruptcy, and crypto-friendly bank Silvergate Capital plummeted 42.73% after it disclosed major customer withdrawals. All three averages are on track to notch five weeks of lossesStocks rose from lows of the day in the afternoon but remained down when St. Louis Federal Reserve President James Bullard said that 2023 may be a disinflationary year in a speech. He also noted that while current policy isn’t “sufficiently restrictive,” it’s moving in that direction and should reach it this year.Stocks opened lower after the ADP private payrolls report showed that employers added 235,000 jobs in December, well above economist estimates. Wages also increased more than anticipated, another sign that the labor market remains hot. Later in the morning, weekly jobless claims came in below expectations and showed a drop in continuing claims.”While we will get a better overall picture of the jobs market tomorrow, private payrolls beating expectations and jobless claims coming in below are indications that the labor market remains resilient,” said Mike Loewengart of Morgan Stanley Global Investment Office.”These come on the heels of big-name companies announcing sizable job cuts so there is no doubt the market’s pressures are weighing on companies, but it remains to be seen when hiring will slow demonstrably,” he added.On Friday, investors will review the December jobs report for updated data on employment and hourly wages. Economists estimate that U.S. employers added some 200,000 jobs in December, which would represent a moderate slowdown from gains in the previous month.A higher number would be further bad news to the Fed that the labor market is still strong. In addition, investors don’t want to see big gains in wage growth, which could signal higher inflation.Correction: A previous version misspelled Loewengart’s last name.

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