Dow Rise on Energy, Bank Boost Jobs Blowout Jobs by Dent Tech by

© Reuters.

by Yasin Ibrahim

Investors .

0.23%, or 76 points, was down 0.50%, and fell 0.18%.

The US economy added new jobs in July, the consensus for 250,000 new jobs in June, while unexpectedly falling by 3.5%.

The jobs report also flagged an increase in wage pressure, which will likely keep inflation high, and give the Federal Reserve the green light to continue front-loading rate hikes.

Jefferies said traders are betting 3.6% on the Federal Reserve’s peak interest rates, or the so-called terminal rate, but that would not be enough to contain inflation given the strong labor market.

“The terminal rate currently priced in the curve looks extremely inadequate. We expect the Fed to continue hiking through Q1’23 until they raise the funds rate to 4-4.25%,” said Jefferies. Told.

If the Fed moves faster than expected, “the market will take this as a big downside, because right now it is pricing in the fed funds rate that is nearing the end of the cycle,” said David Keller, chief market strategist at Stockcharts. Said investment. com in an interview on Friday.

, which are sensitive to Fed rate hikes, rose to their highest level in nearly two months. also climbed, rising over 6%.

Market growth sectors, which tend to be unattractive in a rising rate environment, were the hardest hit with large tech and consumer discretionary stocks leading the way.

Tesla (NASDAQ:) led a 6% decline in consumer shares after shareholders backed the company’s proposed 3-for-1 stock split.

Energy rose 2% to offset some losses from a day earlier as oil prices rose as fears of a recession dented demand after a strong jobs report.

Banking stocks, including JPMorgan Chase & Company (NYSE:), meanwhile, led financials higher as rising rates supported lending margins.

Meanwhile, the earnings front posted a stronger-than-expected performance with LYFT delivering mixed quarterly results.

LYFT (NASDAQ:) jumped 16% after the ride-hailing company reported a surprise as demand reached pre-pandemic levels.

AMC Entertainment (NYSE:) reported a slightly higher-than-expected quarterly loss and announced that it would issue a dividend to all common shareholders in the form of preferred shares. Its shares jumped nearly 19 per cent.

This move in effect “creates a stock split for two, with half listed under ‘AMC’ and half under ‘APE’. [stock ticker]Wedbush said.

The Block (NYSE:) fell 2% despite giving that beat on both the top and bottom lines as a 34% drop in bitcoin revenue halted growth.


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