Shares fluctuated heavily during the trading day on Friday before the session ended mostly below. With the fall in the day the main averages increased the sales observed during trading on Thursday.
The Nasdaq technology fell 173.03 points or 1.4 percent to 12,144.66, again reaching its lowest closing level in more than a year. The S&P 500 fell 23.53 points, or 0.6 percent, to a low of 4,123.34, while the Dow fell 98.60 points, or 0.3 percent, to a two-month low of 32,899.37.
During the very volatile week, the Nasdaq fell 1.5 percent and the Dow and S&P 500 fell 0.2 percent.
The lowest closure on Wall Street came after a Labor ministry report showed higher-than-expected job growth in April.
The report shows that non-agricultural employment rose 428,000 jobs in April, in line with the revised jump observed in March.
Economists expected employment to grow by 391,000 jobs compared to 431,000 jobs originally reported the previous month.
Meanwhile, the Ministry of Labor said the unemployment rate remained unchanged at 3.6 percent against expectations that the rate would drop to 3.5 percent.
Due to the fact that the report shows continued growth in the labor market, economists predict that the Federal Reserve will continue its plans for a sharp rise in interest rates in the coming months.
“Overall, when labor market conditions are still so strong – including very rapid wage growth – we doubt the Fed is going to abandon its hawkish plans because of the current bout of stock weakness,” Ashworth said.
Concerns about the prospect of interest rates may have intensified Wall Street along with the steady increase in the yield of Treasury bills.
Shares of airlines fell sharply that day, with the NYSE Arca index falling 3.1 percent to a nearly two-month low.
Significant weakness was also seen among biotech stocks, reflected in a 2.8 percent drop in the NYSE Arca Biotechnology Index. The index ended the session at its lowest level in two years.
Shares of brokerage, network and retail stocks also experienced significant weakness in the day, which added to the sharp losses posted in the previous session.
On the other hand, energy stocks increased sharply during the session, which benefited from a marked rise in oil prices.
As oil for June delivery jumped $ 1.51 to $ 109.77 a barrel, the NYSE Arca Oil index rose 3.1 percent to its best closing level in nearly eight years.
In foreign trade, stock markets across the Asia-Pacific region during Friday’s trading moved mostly lower. China’s Shanghai Composite Index fell 2.2 percent and Hong Kong’s Hang Seng index fell 3.8 percent, although Japan’s Nikkei 225 index stopped the uptrend and rose 0.7 percent.
Major European markets also went down this day. While the French CAC 40 index fell 1.7 percent, the German DAX index and the UK FTSE 100 index fell 1.6 and 1.5 percent, respectively.
In the bond market, Treasury bonds extended the sales observed at the previous session. Subsequently, the yield on the reference ten-year bill, which is moving against its price, rose by 5.7 basis points to 3.123 percent.
After some key economic developments last week, inflation data is likely to draw attention next week, with trade potentially affected by reports on consumer prices, producer prices and import and export prices.
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