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Wall Street ends week lower as job report gains fade Reuters

© Reuters. Traders at work on the floor of the New York Stock Exchange (NYSE) in New York City, USA, August 22, 2022. REUTERS/Brendan McDermid

Chuck Mikolayczak

NEW YORK (Reuters) – U.S. stocks ended the trading week lower on Friday as an early rise in the jobs report, which suggested the labor market may be starting to loosen, replaced fears of a gas crisis in Europe. rice field.

Wall Street opened significantly higher after August’s U.S. payroll report showed stronger-than-expected hiring, but unemployment rose to 3.7%, prompting the Fed to Concerns about the Fed being overly aggressive in raising rates in an attempt to bring down high inflation have eased. .

But state-owned Gazprom (MCX:), which dominates Russia’s gas exports to Europe via a pipeline that was due to resume on Saturday, said it could not safely resume deliveries until the oil leak was fixed. After that, the profit disappeared. It was found in an important turbine and did not give a new time frame.

“The afternoon is definitely overshadowing this morning’s good data. The afternoon is being stolen by European headlines,” said Zach Hill, head of portfolio management at Horizon Investments in Charlotte, N.C. .

Analysts also said low trading volumes ahead of the holiday weekend had exaggerated market movements.

“The set-up is important. Over the past week or so there has been optimism about the energy situation in Europe, long-term electricity prices have fallen in some cases by almost half, and almost 80% of German storage tanks have been filled with gas. There are indications, so we’re seeing a slight adjustment in positioning against that backdrop, coupled with lower liquidity from Friday afternoon through the holiday weekend,” Hill said.

It fell by 337.98 points or 1.07% to 31,318.44. 42.59 points lost, or 1.07% to 3,924.26. It fell by 154.26 points or 1.31% to 11,630.86.

The market is closed on Mondays due to the Labor Day holiday.

Energy was the only major S&P sector to end the session in positive territory, up 1.81%.

Labor costs beat expectations, but average hourly wages rose 0.3% from expectations of 0.4%, and the unemployment rate rose to 3.7% from its pre-pandemic low of 3.5%. Enable.

Wage growth data is seen as key to the Fed’s deliberations on raising interest rates as it attempts to return inflation to its 2% target, which has been at a 40-year high. CME FedWatch tool https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html expects central bank to raise rates by 3 straight 75 basis points at September meeting dropped to 56%. ?redirect=/trading/interest-rates/fed-funds.html, down from 75% the day before.

The focus has now shifted to the August consumer price report due mid-month. This is the last major data available before the Fed’s Sept. 20-21 policy meeting.

After the S&P 500 hit a four-month high in mid-August, stocks fell on fears of aggressive monetary tightening, a day before Fed Chairman Jerome Powell’s hawkish remarks about rate hikes last week. fell about 7% from His views were later echoed by other policy makers.

All three major indices fell for the third consecutive week as the Dow fell 2.99%, the S&P 500 fell 3.29% and the Nasdaq fell 4.21%.

Trading volume on US exchanges was 9.95 billion shares, compared to an average of 10.48 billion shares across the last 20 trading days.

Losers outnumber gainers on the New York Stock Exchange by a ratio of 1.34 to 1. Losers dominated on the Nasdaq with a ratio of 1.65 to 1.

The S&P 500 hit three 52-week highs and 14 new lows. The Nasdaq Composite posted 47 new highs and 184 new lows.

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