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S&P 500 stumbles as red-hot jobs report triggers Fed jitters

Stock Markets Dec 02, 2022 02:07PM ET
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By Yasin Ebrahim

Investing.com -- The S&P 500 cut some losses Friday, but remained under pressure after a red-hot jobs report showing more than expected job gains in November and rising wage pressures stoked fears about higher for longer Federal Reserve interest rates.

The S&P 500 fell 0.4%, the Dow Jones Industrial Average slipped 0.32%, or 111 points, and the Nasdaq fell 0.76%

The U.S. economy racked up 263,000 job gains in November, well above the 200,000 economists had forecast, but worryingly for the Fed average hourly wages rose by a much more than expected 0.6%, keeping elevated inflation fears front and center.

“This morning’s stronger-than-expected headline rise in employment coupled with a larger-than-expected gain in wage pressures reinforces the need for the Fed to remain focused on taming inflation,” Stifel said in a note.

Treasury yields lost some steam but remained in the ascendency as investors renewed bets on the Fed’s peak level of interest rates, or the terminal rate, rising above 5% next year.

Technology stocks were back in the firing line amid expectations for higher for longer rates, with Apple (NASDAQ:AAPL) falling more than 1% to lead big tech to the downside.

A more than 2% wobble in semiconductor stocks also weighed on the broader tech sector as chipmaker Marvell Technology Group Ltd 's  (NASDAQ:MRVL) softer guidance and weaker-than-expected third-quarter results soured sentiment on semis.

The weaker fiscal fourth-quarter guidance ahead comes as the chipmaker works its way through overloaded inventory, a process likely to continue into next year.

“We believe MRVL is undershipping end demand in F4Q…to aggressively lower customer/channel inventory, a process that is likely to continue into F1Q,” Deutsche Bank said in a note.

Banking stocks continued to lose ground, paced by a more than 3% decline in Wells Fargo (NYSE:WFC) following reports a day earlier that the bank is shaping up to cut jobs in its mortgage business amid pressure from Fed rate hikes that have stifled demand for new mortgages and refinancing.

Northern Trust (NASDAQ:NTRS), BlackRock Inc (NYSE:BLK) and State Street (NYSE:STT) were more than 1% lower.

Energy stocks were dragged lower by a slip in oil prices ahead of a meeting of the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+.

Pointing to OPEC+’s decision to opt for a virtual meeting rather than an in-person meeting, RBC0 said the group’s decision to opt for “no-drama optics seemingly increases the likelihood of a rollover decision.”

EQT (NYSE:EQT), Valero Energy (NYSE:VLO) and Marathon Oil (NYSE:MRO) were among the biggest decliners in the energy sector.

S&P 500 stumbles as red-hot jobs report triggers Fed jitters
 

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Comments (9)
adriaan kuhn
adriaan kuhn Dec 02, 2022 4:15PM ET
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we all know the fed is pushing for 10/12%, they have to get the money printed during QE back somehow...
Don Burris
Don Burris Dec 02, 2022 4:08PM ET
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This jobs report is a lie. ADP which is much more reliable than surveys post 100,000 gain. This is why silver continues to rise.
Ricardo Diogo
Rcd72 Dec 02, 2022 3:59PM ET
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the fraud is on inflation numbers real figures are near 10 %.... trying to keep unrealistic nonsense stock values
First Last
First Last Dec 02, 2022 3:59PM ET
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Where do you get you "real" figures?
Val Rawfoodsky
Val Rawfoodsky Dec 02, 2022 3:30PM ET
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Who stumbles? These writers make up stories every day lol
First Last
First Last Dec 02, 2022 3:30PM ET
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You didn't see the market dive at 8:30 am after job report?
Gyuri Molnár
Gyuri Molnár Dec 02, 2022 3:20PM ET
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What the ***** are you guys talking about, all day agressive buying goin on, why are you posting such fake news?
Tom Michaels
Tom Michaels Dec 02, 2022 3:19PM ET
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Fraudulent reporting, all rigged
Dave Jones
Dave Jones Dec 02, 2022 2:59PM ET
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New spin please.
Тони Chuk
Тони Chuk Dec 02, 2022 2:59PM ET
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hahahah
Lionel Deville
Lionel Deville Dec 02, 2022 2:44PM ET
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I had to reread my macro classes initiation, to clear a doubt. According to Keyne’s model, employment does not seem to be linked to interest rates, because they depend on consumption, and its regulation is that of an effective real wage rate in relation to the real, with an unchanged price (or in decline which seems the case).
Lionel Deville
Lionel Deville Dec 02, 2022 2:44PM ET
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" real wage rate pay "
Тони Chuk
Тони Chuk Dec 02, 2022 2:44PM ET
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bro everything is a scam! be ready for the printer
EL LA
EL LA Dec 02, 2022 2:33PM ET
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Trump... jobs GOOD! Biden....jobs BAD!
tim banks
tim banks Dec 02, 2022 2:33PM ET
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you cracked the code. get em
 
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