Wall Street Back In Bear-Market Territory As Hike Fears Spike On Robust US Jobs Report

Fahad Shabbir (@FahadShabbir) Published October 08, 2022 | 02:40 AM

NEW YORK (UrduPoint News / Sputnik - 08th October, 2022) Wall Street was back in bear-market territory Friday after edging higher earlier in the week as a robust US jobs report for September and its potential to attract higher interest rates rattled investors.

The United States added 263,000 jobs in September, slightly above economists' expectations, while its jobless rate dipped to 3.5% from August's 3.7% in a continued challenge to the Federal Reserve's fight against inflation, US Labor Department data showed on Friday.

The Dow Jones Industrial Average, Wall Street's broadest equities indicator comprising stocks of 30 large US corporations, closed Friday's session at 29,270, down 630 points, or 2.1%. For the week, the Dow rose 2%, leveraging on a strong run-up in the first sessions of the week. But year-to-date, it was down almost 20%, virtually in bear-market territory.

The S&P 500 Index, which represents the top 500 US stocks, finished the day down 105 points, or 2.8%, at 3,640. The S&P rose 1.

5% on the week. Year-to-date, it was down 24%.

The Nasdaq Composite Index, which comprises marquee Names in technology such as Amazon, Apple, Netflix and Google, settled Friday's trade down 421 points, or 3.3%, at 10,652. For the week, Nasdaq rose 0.7%. Year-to-date, the technology bellwether lost 32%.

"US stocks tumbled as job strength remains, which means we most likely won't be seeing a Fed downshift" in rates, Ed Moya, analyst at online trading platform OANDA, said. "Wall Street has been bombarded with a swathe of Fed speak that remains committed to fighting inflation and that hawkish shtick will continue. It remains all about inflation."

In a bid to curb inflation hovering at four-decade highs, the Fed has raised rates by a total of 300 basis points this year from a base of just 25 at the start of 2022. The central's policy-making Federal Open Market Committee is expected to add another 75 basis points to rates at its November meeting and at least 50 points in December.