US stocks fell at the end of trading on Friday, after the strong jobs report for the month of September raised the possibility that the Federal Reserve will advance its campaign with raising interest rates that many investors fear will push the US economy into recession, but despite that, stocks did better Its a week in a month.
performance indicators:
- The Dow Jones Industrial Average (DJIA) declined to record losses of -2.11%, equivalent to -630.15 points only, to settle at the end of trading at the level of 29,296.79.
- The broader Standard & Poor’s 500 Index (SPX500) dropped to record -2.80% losses, or -104.86 points, to settle at the end of trading at 3,639.66.
- The Nasdaq Composite Index (COMP) also declined, recording a loss of -3.80%, equivalent to -420.91 points, and closing at 10,652.41.
Stocks posted consecutive losses to pare their weekly gains, but posted their best weekly gain since September 9, with the Dow Jones Industrial Average up 2% for the week, the S&P 500 advancing 1.5%, and the Nasdaq up 0.7%.
All market sectors fell, with losses led by technology, consumer appreciation and telecom services sectors, after a profit warning from a leading microchip maker ahead of this week’s quarterly earnings results season.
Stocks posted sharp losses on Friday after the Labor Department reported that non-farm payrolls rose by 263,000, above consensus estimates by adding 250,000 jobs, as the services sector added 244,000 jobs driven by gains in education, health services, entertainment and hospitality.
The unemployment rate fell to 3.5% in September from 3.7% in August, compared to demands for no rate change, and the labor force participation rate fell 0.1 percentage point to 62.3%. Average hourly wages rose 0.3%.
That data suggests that the economy continues to show resilience, despite the Fed’s efforts to bring down high inflation by dampening growth, as job gains, a low unemployment rate and continued healthy wage growth point to a strong labor market, and Fed officials are likely to see inflation keep up. Too high.
The data also underpinned another big interest rate hike, as money markets raised the probability of a fourth consecutive rate hike by 75 basis points to 92%, when Fed policymakers meet on November 1-2, up than 83.4% before the data.
One economist said the Fed should not be reassured by a tight labor market because when the unemployment rate starts rising, it quickly rises and is a leading indicator of recession.
Meanwhile, New York Fed President John Williams said on Friday that benchmark interest rates will likely need to reach 4.5% over time, the Fed’s policy rate is now in the 3%-3.25% range, up from the zero to 0.25% range. a year ago.
Investors continue to hope for an easing of inflation and will be watching the release of the Consumer Price Index for September next week, as the index will provide a key glimpse into the level of inflation, as well as the corporate earnings season.
Volume on US exchanges was 11.15 billion shares, compared to an average of 11.73 billion for the full session over the past 20 trading days.
Separately, WTI futures rose 4.6% to $92.48 a barrel, while Representatives Sean Kasten of Illinois, Tom Malinowski of New Jersey and Susan Wild of Pennsylvania, all Democrats, introduced a bill that would require the removal of US forces and missile defense systems from Saudi Arabia and the United Arab Emirates. The move follows the recent decision by OPEC+ to cut daily crude oil production by two million barrels per day despite calls from President Joe Biden not to cut production, at a time of rising inflationary pressures globally.