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U.S. stocks fell sharply following reports of disappointing work

Stock prices fell sharply in the course of trading on Friday morning, partially offsetting the rise seen in the previous session. All major averages have turned down, especially the tech-heavy Nasdaq.

Currently, the key average is just below the session lows. The Dow is down 202.10 points or 0.6 percent to 34,437.69, the Nasdaq is down 282.04 points or 1.8 percent to 15,099.28, and the S & P 500 is down 46.00 points or 1 percent to 4,531.10.

The Wall Street pullback has increased the volatility seen throughout the week, demonstrating that stocks fluctuate sharply back and forth in response to the latest news about Omicron varieties. coronavirus..

After the first confirmed case of Omicron in the United States at the beginning of the week, new variants are now detected in at least five states.

Traders are also responding to a carefully watched report from the Ministry of Labor showing that US employment growth in November is much weaker than expected.

According to the report, the number of non-farm payrolls surged in October with an upward revision of 546,000, followed by an increase in 210,000 in November.

Economists expected a surge in employment of 550,000 compared to the 531,000 employment surge initially reported last month.

Despite much weaker employment growth than expected, the unemployment rate fell from 4.6% in October to 4.2% in November. Economists expected the unemployment rate to drop to 4.5%.

With a much higher than expected decline, the unemployment rate has fallen to its lowest level since reaching 3.5% in February 2020.

Disappointed job growth has raised some concerns about the economic outlook in the emergence of the Omicron variant, but economists discourage data from accelerating the tapering of its asset purchases from the Federal Reserve. I don’t expect.

Gregory Dako, chief US economist at Oxford Economics, said “yes” employment reports are sufficient to announce that the Fed could double the pace of quantitative easing policy tapering. It’s as powerful as it is. “

“The Fed’s pivot aims to provide hawkish forward guidance while clearing the runway to raise rates at any time since March 2022,” he added.

Meanwhile, another report from the Institute for Supply Management showed that the pace of growth in US services sector activity in November accelerated unexpectedly.

According to ISM, the PMI for services rose from 66.7 in October to a record high of 69.1 in November, with values ​​above 50 indicating sector growth. This increase surprised economists who expected the index to fall to 65.0.

Software stocks fell sharply in the morning trading, and the Dow Jones US Software Index fell 3% to its lowest daytime level in more than a month.

DocuSign (DOCU) has recorded a plunge after reporting its third-quarter earnings, when digital signatories provided better-than-expected but disappointing earnings guidance.

Biotechnology stocks also show significant weaknesses, as reflected in the 1.7% decline in the NYSE Arca Biotechnology Index. The index is currently moving at the pace of ending the session at the lowest price in a year.

Airlines, banks and steel stocks have also shown significant weaknesses, retreating after showing the best performance in the market on Thursday.

In foreign trade, stocks market During the trading on Friday, the entire Asia Pacific region rose almost. Japan’s Nikkei 225 Index rose 1% and China’s Shanghai Composite Index rose 0.9%.

Meanwhile, major European markets have turned down in the course of the session. The UK’s FTSE 100 index is down 0.2%, while the French CAC 40 index and the German DAX index are both down 0.8%.

In the bond market, government bonds fluctuated in the morning and are now showing strong movements. After that, the yield on the benchmark 10-year bond, which moves in the opposite direction to the price, drops by 3.1 basis points to 1.417%.

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U.S. stocks fell sharply following reports of disappointing work

Source link U.S. stocks fell sharply following reports of disappointing work

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