Wall Street shares tumble in volatile trade after US jobs report – .

Wall Street shares tumble in volatile trade after US jobs report – .

Wall Street shares fell on Friday as investors scanned the latest U.S. jobs report for clues to the direction of monetary policy and remained focused on the spread of the novel strain of the Omicron coronavirus .

The blue-chip S&P 500 index lost 1%, while the technology-focused Nasdaq Composite fell 1.8% in recent trading.

Trading was choppy on Friday for both stocks and parts of the $ 22 billion U.S. government bond market. The moves came after a Bureau of Labor Statistics report showed that the US economy created only 210,000 new jobs last month, less than the 550,000 predicted by economists in a Refinitiv poll.

Traders have paid close attention to economic developments after Federal Reserve Chairman Jay Powell on Tuesday signaled his support for a faster cut of the central bank’s $ 120 billion in monthly bond purchases. The program has been a crucial pillar in the rally in stock prices since the depths of the coronavirus crisis last year.

As the economy created fewer jobs than expected last month, the unemployment rate fell to its lowest since the start of the pandemic.

“There are signs of recovery and other signs of easing” in the employment data, said Maria Municchi, multi-asset fund manager at M&G.

Hussain Mehdi, strategist at HSBC Asset Management, said that “for the Fed this will likely be enough proof that the job recovery is progressing at a decent pace and with inflation at high levels, justifying a rapid decline of its asset purchases remain intact ”.

Two-year US government bonds, seen as particularly sensitive to monetary policy expectations, initially rallied after the jobs report was released, but came under selling pressure later. The yield recently rose 0.01 percentage point to 0.633%. It traded in a range of around 0.06 percentage point on Friday, well above this year’s average, according to data from Refinitiv.

Longer-term bonds, which more closely reflect the medium-term economic outlook, gained in price. The 10-year Treasury yield fell 0.02 percentage point to 1.43%.

Shares of Chinese New York-listed companies also came under heavy pressure on Friday after ridesharing app Didi announced plans to withdraw from the New York Stock Exchange and prepare to go public in Hong Kong. .

Didi shares fell 16% in US morning trades. JD.com, Baidu, and Pinduoduo all fell around 8%. Shares of well-known US tech names also fell, with Adobe down 8% and chipmaker Advanced Micro Devices down 5%.

Financial markets have also been dominated by news about Omicron since last Friday, after the World Health Organization declared it a worrying variant and vaccine makers made a series of predictions about its potential to evade the. existing jabs.

Germany has moved to impose social restrictions on unvaccinated people, and US President Joe Biden has announced measures to slow the spread of the coronavirus, including stricter testing requirements for international travelers.

The Stoxx Europe 600 stock index fell 0.8 percent, after losing 1.2 percent in the previous session. London’s FTSE 100 fell 0.2%.

In Asia, the Hong Kong Hang Seng Index closed down about 0.1%.


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