Home Business U.S. stocks have come out of the worst levels but remain mostly...

U.S. stocks have come out of the worst levels but remain mostly lower


After a sharp decline at the beginning of the session, the stock regained some positions during the trading day on Friday. Core averages have risen from their session lows but are now in negative territory.

The tech Nasdaq, which fell to its lowest intraday level in more than a year at the start of trading, fell 108.49 points or 0.9 percent to 12,209.20. The Dow was down 196.08 points or 0.6 percent to 32,801.89, while the S&P 500 was down 22.64 points or 0.6 percent to 4,124.23.

Retaining weaknesses on Wall Street come after the Department of Labor’s report released, which shows 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 intensify on Wall Street along with a further increase in Treasury treasury yields.

Sector News

Biotech stocks continue to experience significant weakness in afternoon trading, with the NYSE Arca biotech index falling 2.4 percent after reaching a two-year low during the day.

Significant weakness also remains noticeable among airline stocks, reflected in a 2 percent drop in the NYSE Arca Airline Index. The index fell to its lowest intraday level almost two months before the session.

Brokerage, network and housing funds also see a noticeable weakness, which adds to the sharp losses reported in the previous session.

On the other hand, energy stocks increased upward during the session, benefiting from a sharp rise in oil prices.

As oil for June delivery jumped $ 2.45 to $ 110.71 a barrel, the NYSE Arca Oil index rose 2 percent to its best intraday level in seven years.

Other markets

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 are extending the sales observed at the previous session. Subsequently, the yield of the reference ten-year note, which is moving against its price, increased by 3.9 basis points and amounted to 3,105 percent.

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