U.S. stocks are falling after stronger than expected jobs data stoked rate fears
Investing.com | Author Liz Moyer
Published Jan 05, 2023 10:32AM ET
Updated Jan 05, 2023 11:28AM ET
By Liz Moyer
Investing.com -- U.S. stocks were falling after new employment data came in stronger than expected, stoking fears that the Federal Reserve would keep interest rates higher for longer.
At 11:21 ET (16:21 GMT), the Dow Jones Industrial Average was down 439 points, or 1.3%, while the S&P 500 was down 1.2% and the NASDAQ Composite was down 1.3%.
ADP’s private payroll report said employers added 235,000 jobs in December, after rising by 127,000 jobs in November. Analysts had expected additions of 150,000. At the same time, the number of people seeking new unemployment claims fell from the prior week.
Both data reports add to Wednesday’s disclosure that the number of job openings in the U.S. was higher than expected, further evidence of a still-tight labor market.
The Fed has been closely watching labor market data as it decides on the direction of interest rate increases to tame inflation. The Fed has already signaled rates would stay higher for a prolonged period, though it seems to be on a path of slowing the pace of its rate hikes. Its December decision raised rates by a half-percentage point, slower than the previous four meetings. Analysts expect it will raise rates again in February, but by a quarter of a percentage point.
St. Louis Fed President James Bullard is expected to speak later today. His appearance comes after Minneapolis Fed President Neel Kashkari on Wednesday published an essay that said further tightening is needed.
Amazon.com Inc (NASDAQ:AMZN) shares were down 2% after the e-commerce giant said it would cut 18,000 jobs from its corporate office. Walgreens Boots Alliance Inc (NASDAQ:WBA) shares fell 7.5% after a quarterly loss tied to charges for opioid litigation.
Shares of home goods retailer Bed Bath & Beyond Inc (NASDAQ:BBBY) sank 24% after it said it was considering options including a bankruptcy filing.
Oil rose. Crude Oil WTI Futures was up 1.6% to $74.02 a barrel, while Brent Oil Futures was up 1.6% to $79.05 a barrel. Gold Futures fell 1.3% to $1,835.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.