November 30, 2022

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Wall Street ends lower as Ukraine fears eclipse of strong jobs data

Wall Street ends lower as Ukraine fears eclipse of strong jobs data

A trader works at the New York Stock Exchange (NYSE) in New York City, US, March 1, 2022. REUTERS/Brendan McDermid

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  • US job growth far exceeded expectations in February
  • Rising commodity prices raise inflation fears
  • End of indices: Dow -0.53%, S&P 500 -0.79%, Nasdaq -1.66%

(Reuters) – Wall Street ended lower on Friday as the war in Ukraine overshadowed the acceleration in US job growth last month, pointing to the strength of the economy.

Most of the eleven major S&P sector indices fell, with financial indicators (.SPSY) Leading with a 2% drop as investors worried about how Western sanctions against Moscow would affect the international financial system.

S&P 500 Banking Index (.SPXBK) It fell 3.35 percent, bringing its loss this week to nearly 9 percent, its worst weekly decline since June 2020.

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Stocks globally were weaker, with safe-haven assets in demand after Russian forces seized Europe’s largest nuclear power plant in what Washington described as a reckless attack threatening catastrophe. Read more

A closely watched Labor Department employment report showed that jobs grew more than expected 678,000 last month and the unemployment rate fell to 3.8%, the lowest level since February 2020. Read more

“Three or four weeks ago, we thought that was a very significant number. But given the background and general events that are happening in Europe, it is not so,” said Zachary Hill, Head of Portfolio Management at Horizon Investments in London. Charlotte.

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“The potential for escalation in a hot war, the potential for an impact on growth in Europe and more broadly, the knock-on effects of the commodity channel and inflation are all taking investors’ time and energy,” Hill said. Inc, Apple Inc (AAPL.O)owner of Google-Alphabet Inc (GOOGL.O) and Microsoft Corporation (MSFT.O) They all lost more than 1%.

The crisis in Ukraine boosted energy stocks as the prices of crude oil and other commodities rose on the back of sanctions against Russia, a major oil producer. Standard & Poor’s Energy Sector 500 (.SPNY) It jumped 2.85% and gained about 9% during the week.

Value-rich growth stocks have faced the brunt of the recent sell-off, with the S&P 500 Growth Index (.IGX) Down 1.3% on Friday. value index (.IVX) It decreased by 0.3%.

Dow Jones Industrial Average (.DJI) It fell 0.53 percent to end at 33614.8 points, while the Standard & Poor’s 500 fell (.SPX) It lost 0.79% to 4,328.87.

Nasdaq Composite (nineteenth) It fell 1.66% to 13,313.44.

Over the course of the week, the S&P 500 and Dow are down 1.3%, while the Nasdaq is down 2.8%.

Federal Reserve Chairman Jerome Powell said this week that he would support a 25 basis point rate increase at the central bank’s March 15-16 policy meeting and would be “prepared to move more aggressively” later if inflation does not subside as quickly as expected. Read more

Rising commodity prices have raised fears of greater inflation, which could prompt the Federal Reserve to raise interest rates more aggressively.

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Shares of WW International (WW.O)formerly known as Weight Watchers, fell more than 8% after the Federal Trade Commission said the company “unlawfully” collected personal information from children without parental permission.

Low issues outnumbered advanced issues on the New York Stock Exchange by 2.12 to 1; On the Nasdaq, the ratio was 2.70 to 1 in favor of declining stocks.

The S&P 500 hit 38 new 52-week highs and 27 new lows; The Nasdaq recorded 44 new highs and 406 new lows.

According to Refinitiv data, the volume of trading on US stock exchanges amounted to 13.9 billion shares, compared to the 20-day average of 12.6 billion.

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Reporting by Devik Jain and Sabahan contractor in Bengaluru, and Noel Randwich in Oakland, CA; Editing by Aditya Soni and Grant McCall

Our criteria: Thomson Reuters Trust Principles.