Geoffrey Smith 

Investing.com — The U.S. stock market opened mixed Thursday due to a sudden sharp decline in unemployment claims and more hawkish language from Federal Reserve officials. This kept fear of tighter currency at the forefront of investors’ minds. 

At 34,413 point, the index had fallen 84 points (or 0.2%) by 9:45 am ET (1345 GMT). But, it was still up 0.1% and 0.3%. This is still a small bounce following two days of losses. The market adjusted to the Fed’s signals that the Fed expects interest rates to increase faster than expected to lower inflation. 

This is due to the tight labor market. Data released earlier by the Labor Department highlighted this fact. Initiative jobless claims were reduced to 166,000. However, previous week’s data have been revised to reflect seasonal adjustment changes by the Bureau of Labor Statistics. Layoffs have fallen to their lowest level in 50 years. Vacancies are at record levels, and unemployment is only 3.6%.

James Bullard from St. Louis Fed has said that central bank remains “behind-the curve” when it comes to fighting inflation. Bullard indicated that the Fed funds rate might need to increase to about 3.5% to lower inflation. This is the latest warning by Fed officials this week, which have made it clear that the Fed will be able to raise rates and reduce its balance sheet faster than the top leaders wanted. 

HP (NYSE:) Stock was the most active in the early trading, rising 16% following Warren Buffett’s $4.2 billion wager on HP. It is Buffett’s third large deal in quick succession. Berkshire Hathaway (NYSE:), which suggests that the most well-known ‘value investor’ in the world is not as worried about U.S. stocks becoming overvalued.

Levi Strauss stock (NYSE:) fell 4.3% despite reporting stronger-than-expected quarterly results and maintaining its prior guidance of sales growth of approximately 12%. Citigroup (NYSE:) Analysts reduced the target price of the stock to $27, in a earlier note to clients. However, the stock trades at 33% less than that.