Breaking News
Investing Pro 0
Cyber Monday SALE: Up to 54% OFF InvestingPro+ CLAIM OFFER

Wall Street dives, oil surges as investors prepare for more rate hikes

Economy Oct 07, 2022 04:47PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: People walk past a screen displaying the Hang Seng stock index outside Hong Kong Exchanges, in Hong Kong, China July 19, 2022. REUTERS/Lam Yik 2/2
 
US500
-0.16%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
+0.01%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
ALVG
+0.88%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
MS
+1.32%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DX
+0.14%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
LCO
+1.34%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Pete Schroeder

WASHINGTON (Reuters) -U.S. stocks tumbled on Friday after a stronger-than-expected jobs report locked in expectations that the Federal Reserve is sticking with a steady diet of rate hikes, while supply cuts continued to boost oil prices.

The Dow Jones Industrial Average closed down more than 600 points, sliding 2.11%, while the S&P 500 fell 2.8% and the Nasdaq Composite lopped off 3.8% in value as investors bet that the Fed's inflation fight will continue apace.

The MSCI world equity index, which tracks shares in 45 nations, was down 2.45%.

The U.S. Labor Department reported that nonfarm payrolls increased by 263,000 in September - slightly above expectations - with the jobless rate dipping to 3.5%, below forecasts.

The data solidified the view that the Fed and other global central banks have a way to go before easing up on their tightening cycles, after stocks surged earlier in the week on hopes that such a pivot may be on the way.

"Today's employment data did little to change the narrative for a Fed committee that has been intensely focused on bringing down inflation," said Charlie Ripley, senior investment strategist for Allianz (ETR:ALVG) Investment Management. "Timing the Fed's pivot away from an aggressive policy stance is proving to be difficult, and the current conditions in the labor market are certainly not helping the situation."

The likelihood of ongoing interest rate increases helped drive up the dollar and Treasury yields yet again. The dollar index, which tracks the greenback versus a basket of six currencies, was up 0.47%, and the yield on benchmark 10-year Treasury notes climbed 5.9 basis points to 3.881%.

Markets are currently pricing in a 92% chance of a 75-basis-point increase for next month's Federal Open Market Committee meeting.

Investors will now turn to quarterly corporate earnings kicking off next week, as well as Thursday's latest monthly figures on U.S. inflation.

"The market's negative reaction may be a sign that investors are processing the likelihood that there will be no change in the Fed's aggressive playbook in the near term," said Mike Loewengart, head of model portfolio construction at Morgan Stanley (NYSE:MS)'s global investment office. "Keep in mind the next Fed decision isn't until early November, so much more data will need to be digested, not least of which is next week's inflation gauge."

Crude oil continued to ride the announced supply cuts from OPEC+ to a five-week high, shaking off concerns of an economic slowdown.

Brent crude closed up 3.7% to $97.91 a barrel and U.S. crude prices were up 4.73% at $92.63 a barrel. [O/R]

Elsewhere, gold took a hit against the surging dollar, with spot prices falling 0.9% to $1,695.52 an ounce.

 

Wall Street dives, oil surges as investors prepare for more rate hikes
 

Related Articles

Foot Locker CFO Andrew Page to step down
Foot Locker CFO Andrew Page to step down By Reuters - Nov 29, 2022

(Reuters) - Foot Locker (NYSE:FL) Inc said on Tuesday finance chief Andrew Page will move out of his role to pursue other opportunities following the company's fourth quarter...

CrowdStrike tumbles following Q3 earnings release
CrowdStrike tumbles following Q3 earnings release By Investing.com - Nov 29, 2022

By Sam Boughedda CrowdStrike Holdings Inc. (NASDAQ:CRWD) shares plunged in after-hours trading following its fiscal third-quarter 2023 earnings report, which topped earnings and...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (7)
Sameer Chohan
Sameer Chohan Oct 09, 2022 1:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
helo?????
Sameer Chohan
Sameer Chohan Oct 09, 2022 1:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
helo
Márcio Ramos
Márcio Ramos Oct 08, 2022 11:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
20$ up just like that! ***
Bipin Kochar
Bipin Kochar Oct 08, 2022 12:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
UK has been hiking rates from early this year with no impact on inflation. The extremely aggressive rate hikes of Fed too have failed to deliver anything other than extreme volatility and pushing many third world countries into bankruptcy and recession. The irresponsible manner in which the Fed has caused the US dollar to appreciate is not just causing US trade deficit to balloon but also a very significant reason for inflation failing to go down in Europe and most of the world. It is hence high time that the Fed acknowledges it's limitations in managing inflation - and instead let's the US Government take appropriate corrective policy actions.
Aryan academy
Aryan academy Oct 07, 2022 10:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
this is right time to investment
Aryan academy
Aryan academy Oct 07, 2022 10:19PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
superb
Web Mail
Web Mail Oct 07, 2022 10:38AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I continue to be surprised.
jason xx
jason xx Oct 07, 2022 5:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i refuse to believe they do a 4th 75bps
Zhehui Jin
Zhehui Jin Oct 07, 2022 5:21AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
When Mr. Powell referred to Paul Volcker in his speech, you know nothing is impossible
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email