© Reuters. A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., August 3, 2022. REUTERS / Andrew Kelly
By Noel Randewich and Devik Jain
(Reuters) – Prices ended lower on Friday, weighed down by Tesla (NASDAQ:) and other tech-related stocks after a solid jobs report fueled recent optimism that The Federal Reserve may abandon its aggressive campaign to dominate amid decades of high inflation.
Data showed that US employers hired far more workers than expected in July, the 19th straight month of payroll expansion, with the unemployment rate falling to a pre-college low. translation is 3.5%.
The report added to recent data that paints an optimistic picture of the world’s largest economy after it contracted in the first half of the year. That dampened investors’ expectations that the Fed might abandon a series of rate hikes aimed at cooling the economy.
“This is all about the Fed. A very strong jobs report like ours has put pressure on the Fed to tighten for longer,” said Adam Sarhan, chief executive officer of 50 Park Investments. “The market is afraid that the Fed will overshoot again. If they tighten too hard and for too long, that will cause a hard landing, a deep recession.”
Tesla fell 6.6% and weighed on the S&P 500 and Nasdaq. The Facebook owner’s Meta Platforms lost 2% and Amazon (NASDAQ:) fell 1.2%, also dragging the index lower.
US Treasury yields rose as the odds of a 75 basis point rate hike in September increased. That helped bank stocks, with JPMorgan (NYSE:) up 3%, and helped prices stay in positive territory.
Now, the focus shifts to next week’s inflation data, with annual US consumer prices expected to rise 8.7% in July after rising 9.1% in June.
Some policymakers this week stuck with a positive tightening stance until they see strong and lasting evidence that inflation is trending towards the US 2% target. Fed.
Rising inflation, the war in Ukraine, the energy crisis in Europe and the outbreak of COVID-19 in China have worried investors this year.
A rather upbeat second-quarter earnings season has helped the S&P 500 recover about 13% from its mid-June low after a tough first half performance.
The S&P 500 index fell 0.16% to 4,145.19.
The Nasdaq fell 0.50% to 12,657.56 points, while the Dow Jones Industrial Average rose 0.23% to 32,803.47 points.
For the week, the S&P 500 gained 0.4%, the Dow fell 0.1% and the Nasdaq gained 2.2%.
Lyft Inc (NASDAQ:) jumped nearly 17% after the ride-hailing company forecast adjusted operating profit of $1 billion for 2024 after posting record quarterly earnings.
Issues advanced more than issues fell in the S&P 500 by a ratio of 1.3 to 1.
S&P 500 announces four new highs and 30 new lows; Nasdaq recorded 60 new highs and 38 new lows.
Volume on US exchanges was relatively light, with 10.6 billion shares traded, compared with an average of 10.8 billion shares over the previous 20 sessions.