U. S. stock market falls at beginning of trading due to pessimistic sentiment
2023.02.10 08:55
U. S. stock market falls at beginning of trading due to pessimistic sentiment
By Ray Johnson
Budrigannews.com – Investors were kept on the defensive by signs that the labor market in the world’s largest economy remains stubbornly strong, and U.S. stocks are expected to open lower on Friday, with the S&P 500 index on track for its worst weekly decline since December.
The contract was down 133 points, or 0.39 percent, at 07:00 ET (12:00 GMT), traded 25 points, or 0.62%, lower, and tech-heavy was down 140 points, or 1.13 percent.
On Thursday, traders pondered how much strength in the U.S. labor market could influence the course of future Federal Reserve hikes, which caused a rally on Wall Street that had highlighted trading thus far in 2023 to falter.
Some observers have come to the conclusion that the Fed may have to keep rates higher for a longer period of time due to recent economic data indicating that the jobs market is still tight despite the elevated borrowing costs. The number of people who were laid off rose to the highest level in four weeks last week, according to data released by the Labor Department on Thursday, but remained historically low.
Separate data released on Friday revealed that employers also reported lower earnings in January than anticipated, falling to a 53-year low of 3.4%.
The blue-chip index lost 249 points, or 0.73 percent, the broad-based index lost 0.88 percent, and the lost 1.02 percent.
Today, investors can look at more economic data, like the most recent from the University of Michigan. Additionally, speeches by Fed policymakers will be closely watched.
U.S.-listed shares of Adidas (OTC:) in corporate news are under pressure following a warning from a sportswear company that its dispute with rapper Ye may result in significant losses in 2023. The stock’s listing in Germany (ETR:) diminished by more than ten percent in European trading.
In the meantime, PayPal Holdings Inc. surpassed quarterly expectations and disclosed that CEO Dan Schulman intends to retire at the end of the year.
Friday’s parade of corporate earnings is expected to be shorter. Coca-Cola (NYSE:), among the biggest names scheduled to report next week, (NYSE:) AIG NASDAQ: Kraft Heinz, as well as Applied Materials
In another area, Russia’s announcement that it would reduce its monthly crude production by approximately 500,000 barrels per day in response to price caps imposed by Western nations pushed up oil prices. Supply constraints brought on by disruptions in Turkey also helped the oil market.
By 7:00 ET, futures were up 2.23 percent to $79.80 per barrel, and contracts were up 2.26 percent to $86.41 per barrel.
Additionally, it fell 0.13 percent to $1,876.05/oz and 0.34 percent to 1.0699.
