Wall Street's three major stock indexes fell at the close of trading Friday (3/6). Wall Street shares weakened after solid jobs report data in the United States (US) supported hopes for a pause in the Federal Reserve's aggressive policy tightening needed to curb high inflation.
Friday (3/6), the Dow Jones Industrial Average fell 348.58 points or 1.05% to 32,899.7. Then, the S&P 500 index fell 68.28 points, or 1.63%, to 4,108.54 and the Nasdaq Composite index fell 304.16 points, or 2.47%, to 12,012.73.
The tech-heavy Nasdaq led Wall Street's declines, tumbling 2.47% as shares of Apple Inc and Tesla Inc plunged.
Earlier, a US Department of Labor report showed nonfarm payrolls rose by 390,000 jobs last month and wages grew. Meanwhile, the unemployment rate remained steady at 3.6%.
The data exceeded analyst estimates. Economists polled by Reuters had forecast that nonfarm payrolls would rise by 325,000 jobs.
Looking at the convincing US jobs report for the current state of the economy, investors are focusing primarily on its potential influence on central bank policy.
"The market is trying to funnel its response through what the Fed may or may not do," said Nela Richardson, chief economist at ADP.
He himself estimates that the market will continue to fluctuate as a result of the uncertainty surrounding interest rates and inflation.
Shawn Snyder, chief investment strategist at Citi Personal Wealth Management, sees the solid US jobs report as a double-edged sword.
This tells us that the US economy is in pretty good shape and this is good news.
"But if you look at it in the context of what it means for the Federal Reserve and monetary policy tightening, it likely makes them more confident that they can continue to tighten," he said.
Markets are fully pricing in that 50 basis point rate hikes by the Fed will take place in June and July.
During the week, the S&P 500 was down 1.2%, while the Nasdaq was down 0.98% and the Dow was down 0.94%.
Volatility has gripped Wall Street in recent weeks as investors debate whether the market has bottomed against a backdrop of some hawkish comments from Fed officials and data suggesting inflation may have peaked.
"For now, the economy looks fine. And the labor market signaling the real economy on Main Street looks very solid," said Richardson at ADP.
source https://id.tradingview.com/
