Home Business U.S. stocks see a further decline after yesterday’s sell-off

U.S. stocks see a further decline after yesterday’s sell-off

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Shares fell mostly in Friday morning trading, expanding the sales observed during the previous session. With a prolonged decline in the day the technological Nasdaq reached its lowest intraday level since November 2020.

The main averages have risen from the worst level for the day, but now remain in negative territory. The Dow was down 185.08 points or 0.6 percent to 32,812.89, the Nasdaq was down 95.89 points or 0.8 percent to 12,221.80 and the S&P 500 was down 25.76 points or 0.6 percent to 4,121.11.

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.

Shares of airlines fell sharply in the morning trading, pulling the NYSE Arca index down 2.8 percent to its lowest intraday level in nearly two months.

Significant weakness also emerged among housing stock, reflected in a 2.8 percent drop in the Philadelphia Housing Index.

Financial stocks are also experiencing significant weakness in the day: the NYSE broker / dealer index Arca and the KBW bank index fell 2.4 percent and 1.9 percent, respectively.

Shares of biotech, chemical and steel also demonstrated noticeable downward movements amid another day of widespread weakness.

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 2 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 3.5 basis points and amounted to 3,101 percent.

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