UNITED STATES NEWS

Stock market today: US futures tumbles after yet another strong US jobs report

Oct 6, 2023, 2:24 AM | Updated: 6:14 am

Wall Street quickly reversed course Friday after the government reported twice as many job gains as expected,

Futures for the Dow fell 1.1% and futures for the S&P 500 tumbled 0.9% before the bell.

The Labor Department reported Friday that U.S. employers added 336,000 jobs in September more than double the 163,000 analysts were expecting. August and July job gains were revised upward by a combined 119,000. The economy has now added a healthy average of 266,000 jobs a month in the past three months. The unemployment rate remained unchanged at a healthy 3.8%.

Combined with strong reports on job openings and unemployment benefits applications this week, all signs point to a labor market that has largely been unaffected by the Federal Reserve’s aggressive interest rate hiking campaign.

Job openings tend to rise in an environment where workers can quit their current jobs because there are better offers out there.

That suggests companies are paying more to lure workers, which is great for people looking for a better job, but also points to an economy at risk of another uptick in inflation.

The rapid selloff before the bell indicates that markets are expecting another rate hike from the Fed before the end of the year.

In a bid to combat inflation, the central bank has raised interest rates 11 times since March of 2022. Those hikes are supposed to cool the economy and loosen the job market, but have brought mixed results.

Market attention also remains on oil prices, which have fluctuated recently and will have major effects on how central banks act on interest rates.

A recent pullback in the price of oil has offered some relief on the inflation front for both U.S. households and the Federal Reserve.

Stocks have struggled since the summer under the weight of soaring Treasury yields in the bond market, which undercut stock prices and crimp corporate profits. Yields have leaped as traders acquiesce to a new normal where the Federal Reserve is likely to keep its main interest rate at a high level for a long time, as it tries to extinguish high inflation.

The yield on the 2-year Treasury ticked back up to 5.02%, while the return on the 10-year rose to 4.75%.

In equities trading, shale producer Pioneer Natural Resources jumped more than 10% on reports that it was in talks to be acquired by Exxon Mobil.

In Europe at midday, France’s CAC 40 and Germany’s DAX each gained 0.2%. Britain’s FTSE 100 retreated 0.8%.

Tokyo was the only major market to decline, while markets in China were closed for a holiday. They will reopen on Monday.

In Asian trading, Japan’s benchmark Nikkei 225 fell 0.3% to finish at 30,994.67. Australia’s S&P/ASX 200 rose 0.4% to 6,954.20. South Korea’s Kospi edged up 0.2% to 2,408.73. Hong Kong’s Hang Seng jumped 1.6% to 17,485.98.

Shares in Hong Kong jumped on strong buying of property and technology stocks that have seen sharp losses in recent trading sessions. However, troubled property developer China Evergrande’s shares were down 1.6%.

U.S. benchmark crude gained 18 cents to $82.49 a barrel. On Thursday, it fell $1.91 to settle at $82.31, a day after tumbling more than $5 for its worst drop in more than a year.

After surging from $70 in the summer to more than $93 last week, the price of a barrel of benchmark U.S. crude has slumped sharply. Brent crude, the international standard, gained 9 cents to $84.16 per barrel.

In currency trading, the U.S. dollar rose to 149.06 Japanese yen from 148.49 yen. The euro cost $1.0561, up from $1.0553.

On Thursday, the S&P 500, Dow Jones Industrial Average and Nasdaq composite all lost around 0.1%.

——

United States News

Associated Press

Court documents shed new details in killing of nursing student at University of Georgia

ATLANTA (AP) — The suspect in the killing of a nursing student on the University of Georgia campus used an object as a weapon in the crime and he’s also accused of “disfiguring her skull,” according to newly filed arrest affidavits. Jose Ibarra, who faces multiple murder and assault charges, is also accused of dragging […]

24 minutes ago

A phone holder hangs in a classroom at Delta High School, Friday, Feb. 23, 2024, in Delta, Utah. At...

Associated Press

Phones are distracting students in class. More states are pressing schools to ban them

SAN FRANCISCO (AP) — In California, a high school teacher complains that students watch Netflix on their phones during class. In Maryland, a chemistry teacher says students use gambling apps to place bets during the school day. Around the country, educators say students routinely send Snapchat messages in class, listen to music and shop online, […]

2 hours ago

Mack Allen, of Leavenworth, Kan., speaks with friends and family following a rally for LGBTQ youth ...

Associated Press

By defining sex, some states are denying transgender people of legal recognition

TOPEKA, Kan. (AP) — Mack Allen, an 18-year-old high school senior from Kansas, braces for sideways glances, questioning looks and snide comments whenever he has to hand over his driver’s license, which still identifies him as female. They’ve come from a police officer responding to a car accident. They’ve come from an urgent care employee […]

2 hours ago

FILE - This combo image shows President Joe Biden, left, Jan. 5, 2024, and Republican presidential ...

Associated Press

Biden and Trump will face tests in Michigan’s primaries that could inform a November rematch

WASHINGTON (AP) — While Joe Biden and Donald Trump are marching toward their respective presidential nominations, Michigan’s primary on Tuesday could reveal significant political perils for both of them. Trump, despite his undoubted dominance of the Republican contests this year, is facing a bloc of stubbornly persistent GOP voters who favor his lone remaining rival, […]

2 hours ago

CORRECTION: REMOVES REFERENCE ABOUT OWNERSHIP OF GUN - Special prosecutor Kari Morrissey shows defe...

Associated Press

Witness at trial recounts fatal shooting of cinematographer by Alec Baldwin

SANTA FE, N.M. (AP) — Testimony at trial Monday turned emotional and argumentative as an eyewitness recounted the fatal 2021 shooting of a cinematographer by actor Alec Baldwin during a movie rehearsal and described gun misfires, crew members walking out and a “ludicrous” pace of work. Hannah Gutierrez-Reed, who was the armorer for the upcoming […]

3 hours ago

Associated Press

Music producer latest to accuse Sean ‘Diddy’ Combs of sexual misconduct

NEW YORK (AP) — Sean “Diddy” Combs was sued Monday by a music producer who accused the hip-hop mogul of sexually assaulting him and forcing him to have sex with prostitutes. The suit, filed in federal court in New York, accuses Combs of repeated instances of unsolicited groping and sexual touching. It also says the […]

4 hours ago

Sponsored Articles

...

Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

(KTAR News Graphic)...

Boys & Girls Clubs

KTAR launches online holiday auction benefitting Boys & Girls Clubs of the Valley

KTAR is teaming up with The Boys & Girls Clubs of the Valley for a holiday auction benefitting thousands of Valley kids.

...

Day & Night Air Conditioning, Heating and Plumbing

Valley residents should be mindful of plumbing ahead of holidays

With Halloween in the rear-view and more holidays coming up, Day & Night recommends that Valley residents prepare accordingly.

Stock market today: US futures tumbles after yet another strong US jobs report