U.S. Stocks Fall Despite Positive Jobs Report
Stocks are opening lower on Wall Street Friday following much stronger than expected hiring data from the Labor Department.
Photo Insert: Stocks in the US fell in premarket trading after a hotter-than-expected report on hiring suggested the Federal Reserve will have to stay aggressive in its efforts to fight inflation.
The S&P 500 is off 0.8% at the opening bell and the Nasdaq is down by more than a percent. The Dow Jones industrials are also falling, the Associated Press (AP) reported on August 5, 2022.
Stocks in the US fell in premarket trading after a hotter-than-expected report on hiring suggested the Federal Reserve will have to stay aggressive in its efforts to fight inflation.
Futures on the S&P 500 fell 1% after being slightly higher just before the Labor Department released its latest employment figures, which showed a gain of 528,000 jobs, compared with an expectation for a gain of 250,000 jobs.
The Dow Jones Industrial Average fell 0.7% and the Nasdaq dropped 1.3%. Bond yields jumped, with the yield on the 2-year Treasury rising to 3.2%. The 10-year treasury yield rose to 2.81%. Markets in London, Paris, and Frankfurt were lower while Shanghai and Tokyo advanced. Oil prices fell back.
In Asia, the Shanghai Composite Index advanced 1.2% to 3,227.03 and the Hang Seng in Hong Kong gained 0.1% to 20,201.94. The Nikkei 225 in Tokyo gained 0.9% to 28,175.897 after June labor cash earnings rose 2.2% over a year ago, though forecasters warned that strength was unlikely to last.
Much of the increase was due to half-yearly bonuses that are paid in June. The Kospi in Seoul added 0.7% to 2,490.80 and Sydney’s S&P ASX 200 advanced 0.6% to 7,015.60. India’s Sensex rose 0.1% to 58,381.11 after the Reserve Bank of India raised its benchmark interest rate by a half percentage point to 5.4%.
New Zealand and Bangkok declined while Singapore rose. Jakarta advanced 0.4% after Indonesia’s economy grew by a stronger-than-expected 5.4% over a year earlier in the latest quarter.