U.S. Stocks Extend Losses Despite Better Than Expected Jobs Number
2022.05.06 17:46
By Liz Moyer
Investing.com — U.S. stocks sank further on Friday, extending into a second day of losses despite a better-than-expected report on job creation in April.
At 10:24 AM ET, the Dow Jones Industrial Average was down 237 points, or 0.6%, while the S&P 500 was down 0.7% and the NASDAQ Composite was down 0.8%.
The Bureau of Labor Statistics said the economy added 428,000 jobs in April, more than the 400,000 expected and the unemployment rate was 3.6%, the same as the month before. Wages didn’t grow as much as in March, however, and that could indicate a slow down in the inflation rate. The Federal Reserve raised its benchmark interest rate on Wednesday by a half-point and indicated similar increases might be on deck in the coming months, but Chairman Jerome Powell eased fears that the central bank might act even more aggressively.
Tech stocks are being slammed by rising rates, with the United States 10-Year Treasury above 3%. In addition to inflation, investors are worried about a possible slowdown in global economic growth as China continues to respond to COVID-19 outbreaks with lockdowns.
Shares of Block Inc (NYSE:SQ) fell 4.6% after the payments company said profit for the Cash App rose 26% from last year, though adjusted earnings per share of 18 cents fell short of expectations. Shares of pharmaceutical firm Johnson & Johnson (NYSE:JNJ) dipped 0.8% after U.S. regulators limited the use of its single-dose vaccine for COVID-19 citing the rare risk of blood clots.
The European Union proposed banning Russian crude oil in six months and phasing out refined product imports by the end of the year. It would need the approval of all 27 bloc countries, but compromises may be in order for Hungary and Slovakia to get the deal through.
Crude oil rose. Crude Oil WTI Futures was up 0.9% to $109.22 a barrel and Brent Oil Futures rose 0.9% to $111.83 a barrel. Gold Futures rose 0.5% to $1884 an ounce.
