Stocks have rebounded after a slide that began in September

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U.S. stocks pared losses in the final hour of trading on Thursday as stocks looked to bounce back from a losing start to September trading. The moves come after all three major averages posted their biggest percentage declines in August since 2015.

The Dow Jones industrial average retreated into positive territory after plunging nearly 300 points, and the S&P 500 fell 0.4%, paring a loss of more than 1% earlier in the session. Tech losses, with Nasdaq Composite down 1%.

Meanwhile, the yield on the benchmark US 10-year note hit 3.257%, its highest level since June, as investors braced for more aggressive rate hikes from the Federal Reserve later this month.

A strong start to September comes after four straight selling sessions amid renewed fears of tighter monetary policy and a possible recession.

In August, the benchmark S&P 500 fell 4.2%, the Dow fell 4.1% and the Nasdaq posted a monthly loss of 4.6%.

“A soft landing looks pretty unlikely,” Wells Fargo’s head of macro strategy Mike Schumacher told Yahoo Finance Live. “A lot of things should go incredibly well – you should have the energy situation easier, which is just shy of a miracle at this point, COVID should probably be pretty moderate if you’re thinking about an increase this fall or this winter.”

Shares of Nvidia ( NVDA ) were among the biggest movers on Thursday, falling as much as 10% after the chipmaker said U.S. officials had ordered the company to stop sales to China of two of its top computer chips used to Artificial Intelligence. Nvidia could lose about $400 million in potential sales in China as a result of the restriction.

Nvidia CEO Jensen Huang points out his CES keynote in Las Vegas, Nevada, U.S., January 7, 2018. REUTERS/Rick Wilking

In commodities, oil prices extended their slide lower as concerns about demand destruction persisted. West Texas Intermediate crude fell more than 2.5% to $87.21.

The moves in crude oil futures come after the commodity’s third straight monthly decline – the biggest losing streak in more than two years. WTI crude sank more than 9% in August, its biggest monthly drop since November.

On the economic data front Thursday morning, jobless claims fell for a third week to the lowest level in two months. First-time jobless claims unexpectedly fell to 232,000 in the week ended August 27. Economists polled by Bloomberg had expected claims to come in at 248,000.

Meanwhile, the Commerce Department said Thursday that spending on new construction projects fell 0.4 percent in July, in line with economists’ estimates. Spending in June fell 0.5% compared with the strongest previous estimate of a 1.1% drop.

The main event of the week is the official Labor Department report for August, which will be released at 8:30 am. ET on Friday morning. Nonfarm payrolls likely rose by 300,000 in August, according to Bloomberg data.

Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc

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