Volatility continued to dominate financial markets, with stocks pushing lower as the latest U.S. jobs data cemented expectations the Federal Reserve will remain on its rate-hike path to combat stubbornly high inflation.
At the end of a week marked by fickle trading, quick reversals and heightened anxiety, the S&P 500 failed to stay in the green and fell to its lowest level in about a year. The gauge posted its fifth straight weekly drop — the longest losing streak since June 2011. The tech-heavy Nasdaq 100 underperformed. Treasury 10-year yields remained above 3%, while the dollar rose. Gasoline futures in New York settled at a record high.
“The markets have been on a roller-coaster ride,” said Lindsey Bell, chief markets and money strategist at Ally. “There is a significant amount of uncertainty. A key question for many investors is how big of a hurdle a quickly rising interest-rate environment is going to be for stocks to overcome.”
The long-awaited jobs report showed U.S. hiring advanced at a robust pace in April, yet a smaller labor force may increase pressure on employers to boost wages even more to bring workers back. That dynamic will likely complicate the Fed’s fight to tame decades-high inflation, as central bankers work to bring labor demand in line with supply.
Some of the main moves in markets:
- The S&P 500 fell 0.6% as of 4 p.m. New York time
- The Nasdaq 100 fell 1.2%
- The Dow Jones Industrial Average fell 0.3%
- The MSCI World index fell 1%
- The Bloomberg Dollar Spot Index rose 0.2%
- The euro was little changed at $1.0547
- The British pound fell 0.2% to $1.2342
- The Japanese yen fell 0.3% to 130.54 per dollar
- The yield on 10-year Treasuries advanced eight basis points to 3.12%
- Germany’s 10-year yield advanced nine basis points to 1.13%
- Britain’s 10-year yield advanced three basis points to 2.00%
- West Texas Intermediate crude rose 2.1% to $110.49 a barrel
- Gold futures rose 0.3% to $1,881.60 an ounce
–With assistance from Sunil Jagtiani, Cecile Gutscher, Denitsa Tsekova and Vildana Hajric.