Stock Market News

Wall St slides as strong jobs data fuels rate hike worries

2022.07.08 18:55

2/2
Wall St slides as strong jobs data fuels rate hike worries
FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 30, 2022. REUTERS/Brendan McDermid

2/2

By Amruta Khandekar and Bansari Mayur Kamdar

(Reuters) – Wall Street’s main indexes slipped on Friday after stronger-than-expected jobs data fueled expectations of another big interest rate hike by the U.S. Federal Reserve later this month.

The Labor Department’s report showed nonfarm payrolls rose by 372,000 jobs in June, higher than the estimated rise of 268,000 jobs, according to a Reuters poll of economists.

The report also showed jobless rate remained near pre-pandemic lows at 3.6% and average hourly earnings rose 0.3%, after gaining 0.4% in May, all pointing to strength in the labor market.

“Certainly, it solidifies the view that there’s going to be a 75-basis-point increase in the next two weeks,” said Tom Plumb, portfolio manager of the Plumb Balanced Fund.

“We are still where bad news is good news and good news is bad news … that’s going to be the case until there’s some perception that the Fed has accomplished or is accomplishing their goal of moderating the growth of the economy.”

Atlanta Fed President Raphael Bostic, until recently among the central bank’s most dovish policymakers, said on Friday he “fully” supports another 75 basis point rate rise later this month.

Fed Governor Christopher Waller and St. Louis Fed President James Bullard said on Thursday they would support another 75-basis-point rate increase, but forecast a downshift to a slower pace afterward.

After a brutal first half of the year, U.S. stock markets started July on a solid footing as investors took relief from easing commodity prices and the Fed hinting at a more tempered program of rate hikes amid concerns of a recession.

The S&P 500 and the Nasdaq recorded their fourth successive higher close on Thursday, while the three main indexes were on track to post weekly gains.

Rate-sensitive shares of high-growth companies such as Microsoft Corp (NASDAQ:MSFT), Amazon.com Inc (NASDAQ:AMZN) and Nvidia (NASDAQ:NVDA) Corp fell nearly 1% as U.S. Treasury yields jumped. [US/]

At 09:48 a.m. ET, the Dow Jones Industrial Average was down 68.69 points, or 0.22%, at 31,315.86, the S&P 500 was down 18.45 points, or 0.47%, at 3,884.17, and the Nasdaq Composite was down 87.57 points, or 0.75%, at 11,533.78.

Levi Strauss (NYSE:LEVI) rose 2.1% after the company’s second-quarter results beat estimates, helped by strong demand for its denim jeans and jackets.

Twitter Inc (NYSE:TWTR) fell 4.6% after a report said Elon Musk’s deal to buy the social media company is in “serious jeopardy”.

GameStop Corp (NYSE:GME) tumbled 7.5% after the video game retailer said it had terminated the employment of Chief Financial Officer Michael Recupero.

Declining issues outnumbered advancers for a 2.00-to-1 ratio on the NYSE and a 1.52-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week high and 29 new lows, while the Nasdaq recorded eight new highs and 11 new lows.

Source

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,377.36 0.01%
ethereum
Ethereum (ETH) $ 3,389.81 0.82%
tether
Tether (USDT) $ 1.00 0.01%
solana
Solana (SOL) $ 253.20 0.93%
bnb
BNB (BNB) $ 660.19 0.77%
xrp
XRP (XRP) $ 1.47 0.95%
dogecoin
Dogecoin (DOGE) $ 0.425494 2.55%
usd-coin
USDC (USDC) $ 1.00 0.02%
cardano
Cardano (ADA) $ 1.05 1.23%
staked-ether
Lido Staked Ether (STETH) $ 3,390.19 0.78%
tron
TRON (TRX) $ 0.2094 2.95%
avalanche-2
Avalanche (AVAX) $ 42.61 0.50%
stellar
Stellar (XLM) $ 0.522395 6.72%
the-open-network
Toncoin (TON) $ 6.14 6.34%
shiba-inu
Shiba Inu (SHIB) $ 0.000026 4.01%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,006.86 0.96%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,074.28 0.01%
polkadot
Polkadot (DOT) $ 9.14 2.16%
chainlink
Chainlink (LINK) $ 18.09 2.29%
bitcoin-cash
Bitcoin Cash (BCH) $ 513.36 0.20%
weth
WETH (WETH) $ 3,389.89 0.83%
sui
Sui (SUI) $ 3.44 0.65%
near
NEAR Protocol (NEAR) $ 6.94 2.05%
pepe
Pepe (PEPE) $ 0.00002 2.25%
leo-token
LEO Token (LEO) $ 8.66 0.28%
litecoin
Litecoin (LTC) $ 97.00 4.28%
aptos
Aptos (APT) $ 12.41 3.98%
uniswap
Uniswap (UNI) $ 11.01 1.77%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,570.26 0.73%
internet-computer
Internet Computer (ICP) $ 11.82 1.42%
hedera-hashgraph
Hedera (HBAR) $ 0.144225 3.34%
usds
USDS (USDS) $ 1.00 0.11%
crypto-com-chain
Cronos (CRO) $ 0.189503 4.43%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.563551 2.10%
ethereum-classic
Ethereum Classic (ETC) $ 29.04 3.23%
render-token
Render (RENDER) $ 7.97 0.31%
bittensor
Bittensor (TAO) $ 532.11 1.53%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.49 2.61%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.02%
kaspa
Kaspa (KAS) $ 0.152601 0.57%
bonk
Bonk (BONK) $ 0.000047 0.48%
whitebit
WhiteBIT Coin (WBT) $ 24.45 1.20%
vechain
VeChain (VET) $ 0.043113 0.41%
arbitrum
Arbitrum (ARB) $ 0.852681 2.90%
dai
Dai (DAI) $ 1.00 0.02%
cosmos
Cosmos Hub (ATOM) $ 8.67 3.69%
blockstack
Stacks (STX) $ 2.25 5.83%
okb
OKB (OKB) $ 56.12 4.02%
filecoin
Filecoin (FIL) $ 5.58 4.28%
mantra-dao
MANTRA (OM) $ 3.70 1.86%