Stocks Fall as Blowout Jobs Report Fuels Rate Hike Bets
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U.S. stocks experienced a decline on Friday following the government's announcement of an unexpected increase in job growth last month. The addition of 162,000 jobs could potentially provide the Federal Reserve with the opportunity to hike its benchmark short-term interest rate to combat inflation during an upcoming meeting of central bank policymakers.
The S&P 500 experienced a 0.5 percent drop in early trading, while the Dow Jones Industrial Average fell by 378 points, or 0.7 percent, as of 11:08 a.m. Eastern time. The Nasdaq composite also saw a slight decrease of 0.4 percent. Positive performance in technology stocks helped to cushion the overall decline in other sectors. Nvidia stocks rose by 1.9 percent, Micron Technology increased by 4.3 percent, and SanDisk climbed by 8.7 percent.
Conversely, Lululemon Athletica saw a significant drop of 19.1 percent after the retailer announced quarterly revenue that fell short of analysts' estimates and issued another warning, lowering its fiscal year-end outlook. U.S. government bond yields, which had previously dipped over the past few days, mostly rose following the strong jobs report.
The yield on the 10-year Treasury, which impacts mortgage rates, remained steady at 4.77 percent, although it has been gradually increasing.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Stocks fall as strong jobs report raises rate hike prospects koreatimes.co.kr
