Featured # Markets | 2 years ago

Wall Street Declines Following Jobs Data Keeps Rate Hike On Pace

On Friday, Wall Street opened lower after weaker-than-anticipated September jobs reports and minimal effect of the chances of an interest rate hike by the end of this year. U.S. employment growth slowed for the third straight month, with employers gaining 156,000 jobs in September. A poll from economists had projected175, 000. The rate of unemployment hiked to 5 percent from 4.9 percent in August, though more Americans returning to the labor force sparked the increase. Hourly wages for private sector workers increased 2.6 percent, in comparison with last year, and were on track with economists’ expectations. Federal Reserve Chair Janet Yellen has reported the economy needs to create less than 100,000 jobs a month to keep up with population growth.

“It’s strong enough that you’re not worried about the U.S. slipping into an economic slump,” said Michael Jones, an investment officer at RiverFront Investment Group in Richmond, Virginia. “But it’s not so strong that it precipitates immediate action from the Fed.”

Following the report, traders trim the chances of a November rate hike to 10 percent from 15.5 percent. Though, the CME Group’s FedWatch tool displayed a 66 percent chance of a hike in December. The dollar .DXY edged lower at 96.64, but was on pace to record its best week since the Brexit vote in June. Fed Vice Chairman Stanley Fischer commented on the jobs report was close to a Goldilocks number, ading that the U.S. economy has been huge in trimming unemployment.

At 10:57 a.m. ET (1457 GMT), the Dow Jones Industrial Average fell 41.84 points, or 0.23 percent, at 18,226.66. The S&P 500 dropped 6.25 points, or 0.29 percent, at 2,154.52 and the Nasdaq Composite declined 12.65 points, or 0.24 percent, at 5,294.21. Seven of the 11 major S&P 500 indexes dropped, with materials declining 1.38 percent and industrials 1.11 percent. Declining issues outnumbered advancing ones on the NYSE by 1,678 to 1,062. On the Nasdaq, 1,544 issues dropped and 979 increased. The S&P 500 index reported four new 52-week highs and three new lows, while the Nasdaq recorded 41 new highs and 22 new lows.

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