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U.S. stocks were sinking after stronger-than-expected ADP jobs report

AuthorLiz Moyer
Published 07/06/2023, 10:17 AM
Updated 07/06/2023, 11:24 AM
© Reuters.

Investing.com -- U.S. stocks sinking after an unexpectedly strong private payrolls report for June stoked new worries about interest rates.

At 11:20 ET (15:20 GMT), the Dow Jones Industrial Average was down 503 points or 1.5%, while the S&P 500 was down 1.4% and the NASDAQ Composite fell 1.6%.

Fed expected to raise rates in July

Wall Street fell on Wednesday after the Federal Reserve released the minutes of its June meeting, where policymakers agreed that more rate hikes are likely as the central bank works to cool inflation.

Futures markets are betting on a quarter of a percentage point hike in July and then again in November. Any moves higher would come after the Fed paused on rate hikes in June to assess how much impact their 10 consecutive hikes have had to this point.

Economic data due this week include jobless claims, job openings, and private payrolls data, heading into Friday’s job report for June. ADP’s private payroll reading was 497,000 jobs created in June, well above expectations for 228,000. Jobless claims for last week came in slightly higher than expected. Job openings of 9.8 million at the end of May were slightly lower than expected.

A strong jobs report could encourage the Fed to continue raising rates.

Meta jumps after it releases Twitter rival app

The prospect of the Fed ending its tightening phase had pushed tech stocks higher to start the year, with the Nasdaq rising 32% for the first half of 2023.

Shares of Meta Platforms, Inc. (NASDAQ:META) dipped 0.2% after the Facebook and Instagram parent launched its competitor to Twitter late Thursday, but hit a new 52-week high in early trading.

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Chip stocks under pressure as Yellen visits China

Shares of chipmakers were in focus as Treasury Secretary Janet Yellen arrives in Beijing for a weekend of meetings with officials there as tensions continue to rise between the U.S. and China over technology and other issues.

Shares of Intel Corporation (NASDAQ:INTC) and Qualcomm Incorporated (NASDAQ:QCOM) were under pressure, falling 3% and 2.4%, respectively.

Shares of JetBlue Airways Corporation (NASDAQ:JBLU) were down 6.4% after it said it would end an alliance with American Airlines (NASDAQ:AAL) and focus on its purchase of Spirit Airlines (NYSE:SAVE).

Latest comments

Unemployment goes down, employment goes up, paychecks go up and they're terrified because people are better off......do you realize who we are managed by or not?!?!
Lets run for hills and sell all stocks…. people are getting jobs like never before our unemployment is the lowest in history,
Time to get trump as president, so we can get our unemployment rate back up to 10% and spend some more money on walls and tax relief.
US has a zombi at the Potus seat and wall street crooks running the economy. Good luck.
Biden hasn't appointed GS people into his admin like Trump did.
define sinking 🤣🤣
god bless the moms of liberty 🇺🇸 as the biden regime collapses under fraudanomics, corruption and rampant incompetence.
what we need is to print more money or supply more liquidity to manufacture like Chinese.
Like China, the US should set up a special economic zone along the border w/ Mexico where minimum wage & other labor laws don't apply and build production facilities there staffed w/ voluntary illegal immigrants.
the worst fed ever. fight the Fed or ignore the fed, no matter what.
The market is recovering. It was a buying opportunity this morning.
Come on all you pausers, skippers, and pivoters, fight the FED and buy now.
great job numbers mean disinflationary. it means greater supply, pushing down product prices. but the wrong fed seems to think more demand with supply constant, so prices would increase. wrong fed, wrong, wrong, wrong.
when will these nay sayers realize interest rates will keep rising until inflation falls to the fed level, dwspite what they predict. The predictors haven't been right for two years on interest rates. Only thing they accomplish is huge market volatility bt there misguided predictions.
"huge market volatility"  --  Look at VIX.
Mr. p thinks and says something. Fed's mentality is yes, sir. i am with you, looking around.
good news is good news. pure and simple. don't think too much. ignore fed. they don't know what they are doing.
Investors also need to be wary of the massive current yield curve inversion steam roller. Why would you want to buy risk assets in front of it?
And yet, FED is waiting for more data...
The Fed is always waiting for more data.  It's its job.
Only a small bump... MM oversold the inflated value stocks need to buy stocks........it will rebound once the MM overbought the fear selling stocks
👍
Selling off China-dependent stocks, because of strong U.S. job report. Now this is rational :). In AI we trust.
Just means they will raise rates a minimum of 50 basis points for the remainder of the year. The biggest worry is that the high rates could hurt the housing market. Then the consumer will be strapped.
Don't worry. we have AI and apple.
Bidenomics ,,,rent will double
1 month still would not correct 2.5 years
The term "real wages" means accounting for inflation, dingus; and the fact remains, real wages advanced last month, eg grew faster than inflation. You'll have to find a new complaint.
can't read brad? I said 1 month does not make up for 2.5 years of negative
My thoughts about this DOW debacle is that the market is so afraid of waiting because of unequivocal corporate greed it does not for a minute care about the long-term investor whose portfolios are being destroyed by sheer greed. Another thing is it appears that Wall Street is now embarrassed because they were boasting about the rescission coming since last October, and look no consecutive loss of jobs in three consecutive quarters, so now they whine and bang their heads against the wall because the Fed has to raise interest rates to curtail inflationary pressure. This is just another example of malignant capitalism at its finest.
ADP report is a good news for stocks, it makes us think that FED wont raise rates anymore :)
FED and old man who think is big boss but he is b.s again play with market
Hani, you are so delusional. There is no recession, so to bring down inflation, the Fed will continue to raise interest rates unless there are massive job losses that have not been so far, according to the jobs numbers. It seems people like you want a recession, so you all can see I told you so, Mr fed, etc., and "the old man has nothing to do with this. The economy is still strong. Greed and malignant capitalism are out of control and doing this.
buy puts. rug pull
you were supposed to buy them yesterday, not after the show is over ;)
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