United States –The US stock market dropped on Friday, October 8, after the evaluation of the month’s employment report. The top three companies experience decreases due to the job report.
After traders evaluated the employment report this month, stocks dropped. As per the report, the unemployment rate continues to drop. Aside from that, it hinted at a surge in interest rates.
The S&P 500 dropped 2.8% to 3,639.66, while the Dow Jones Industrial Average dropped 630.15 points, 2.1% to 29,296.79. As for Nasdaq Composite, this company also decreased 3.8% to 10,652.41, below 1% above its year’s low.
The losses that occurred this Friday cut the gains for what began as a comeback week. The main averages ended this week higher, yet these gave most gains back from the rally where it kicked off. S&P increased by 1.5%, while Dow Jones increased by 2% this week. As for Nasdaq, it gained a 0.7% increase, which is the lowest among the three.
The United States US economy added around $260,000 jobs this month, while Dow Jones estimated it at 275,000. There’s a slight difference from the reports, yet the unemployment rate was at 3.5%, decreasing from last month’s rate of 3.7%. With the rates, employment remains reinforced, even when the Federal Reserve tried to slow the US economy down by stemming inflation and rate hikes.
Peter Boockvar, Bleakley Financial’s chief investment officer, stated that the decrease in the unemployment rate is what the stock market wants since it means a lot to the Fed. He also added that the pace of firing employees stays muted when mixed with the low level of early jobless claims.
The dropping unemployment rate initiated a jump in interest rates, which is the reason behind the weight on the stocks.
The stock of Advanced Micro Devices tumbled as well. There was a warning in its third quarter where the group should anticipate a decrease.
As Christopher Harvey, a Wells Fargo Securities’ equity analyst, the conclusion from many traders is that Fed will not provide support to markets. The group will also dodge price stability until something happens in the capital market.
On the other hand, stock traders wonder whether the US stock market will be open on October 10, Monday, since it’s a federal holiday. The upcoming holiday is Indigenous People’s Day or Columbus Day.
The US stock market is open on Monday. However, bond markets will take time off, making it a long weekend for corporate bonds, the Treasury market, and other systems of tradable debt.
