sunny.png
Monday August 15th, 2022 5:47PM

US stocks falling after red-hot jobs report; Warner -15%

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Stocks are opening lower on Wall Street Friday following much stronger than expected hiring data from the Labor Department. The S&P 500 is off 0.8% at the opening bell and the Nasdaq is down by more than a percent. The Dow Jones industrials are also falling. Labor Department figures show U.S. employers added 528,000 jobs last month, restoring all the jobs lost in the coronavirus recession, while unemployment fell to the lowest since the pandemic erupted in early 2020. The hiring boom suggests the Fed may continue aggressively fighting inflation. Warner Bros. Discovery shares are having their third worst day ever after reporting weak second quarter earnings.

THIS IS A BREAKING NEWS UPDATE. AP's earlier story appears below.

Stocks in the U.S. fell in premarket trading after a hotter-than-expected report on hiring suggested the Federal Reserve will have to stay aggressive in its efforts to fight inflation.

Futures on the S&P 500 fell 1% after being slightly higher just before the Labor Department released its latest employment figures, which showed a gain of 528,000 jobs, compared with an expectation for a gain of 250,000 jobs.

The Dow Jones Industrial Average fell 0.7% and the Nasdaq dropped 1.3%. Bond yields jumped, with the yield on the 2-year Treasury rising to 3.2%. The 10-year treasury yield rose to 2.81%. Yields had been pulling back in expectations the Fed could ease up somewhat on the pace of rate hikes as the U.S. economy slowed, giving a boost to the stock market.

Markets in London, Paris and Frankfurt were lower while Shanghai and Tokyo advanced. Oil prices fell back.

The Fed has raised its benchmark rate twice by 0.75 percentage points this year, three times its usual margin and the biggest hikes since the early 1990s.

Investors worry rate hikes by the Fed and other central banks in Europe and Asia to tame inflation that is running at multi-decade highs might derail economic growth.

Fed officials have tried to calm fears the United States might tip into a recession by pointing to a strong job market as evidence the economy can tolerate higher borrowing costs.

In Asia, the Shanghai Composite Index advanced 1.2% to 3,227.03 and the Hang Seng in Hong Kong gained 0.1% to 20,201.94.

The Nikkei 225 in Tokyo gained 0.9% to 28,175.897 after June labor cash earnings rose 2.2% over a year ago, though forecasters warned that strength was unlikely to last. Much of the increase was due to half-yearly bonuses that are paid in June.

The Kospi in Seoul added 0.7% to 2,490.80 and Sydney's S&P ASX 200 advanced 0.6% to 7,015.60.

India's Sensex rose 0.1% to 58,381.11 after the Reserve Bank of India raised its benchmark interest rate by a half percentage point to 5.4%. Central bank Gov. Shaktikanta Das forecast 7.2% economic growth in the year through March and inflation of 6.7%.

New Zealand and Bangkok declined while Singapore rose.

Jakarta advanced 0.4% after Indonesia's economy grew by a stronger-than-expected 5.4% over a year earlier in the latest quarter.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Amazon to buy vacuum maker iRobot for roughly $1.7B
Amazon on Friday announced it has entered into an agreement to acquire the vacuum cleaner maker iRobot for approximately $1.7 billion
9:53AM ( 26 minutes ago )
US stocks falling after red-hot jobs report; Warner -15%
Stocks are opening lower on Wall Street Friday following much stronger than expected hiring data from the Labor Department
9:48AM ( 31 minutes ago )
China halts climate, military ties over Pelosi Taiwan visit
China says it is canceling or suspending dialogue with the U.S. on a range of issues from climate change to military relations and anti-narcotics efforts in retaliation for a visit this week to Taiwan by U.S. House Speaker Nancy Pelosi
9:48AM ( 32 minutes ago )
Associated Press (AP)
US employers add 528,000 jobs; unemployment falls to 3.5%
Defying anxiety about a possible recession and raging inflation, America’s employers added a surprising 528,000 jobs last month, restoring all the jobs lost in the coronavirus recession as the country’s hiring boom continued
9:12AM ( 1 hour ago )
Democrats say they've reached agreement on economic package
Senate Democrats say they have reached an accord on changes to their marquee economic legislation, clearing the major hurdle to pushing one of President Joe Biden’s leading election-year priorities through the chamber in coming days
8:48AM ( 1 hour ago )
Pelosi: China cannot isolate Taiwan by preventing visits
U.S. House Speaker Nancy Pelosi says China will not be able to isolate Taiwan by preventing U.S. officials from traveling there
8:44AM ( 1 hour ago )
AP Business
EXPLAINER: Why is insulin so expensive and difficult to cap?
Reining in the soaring prices of insulin has thus far been elusive in Congress, although Democrats say they’ll try again — as part of their economic package that focuses on health and climate
6:28AM ( 3 hours ago )
Biden, Republicans spar over impact of Dems' economic plan
Democrats call it the “Inflation Reduction Act.”
11:47PM ( 10 hours ago )
CEO of publishing giant defends deal challenged by US gov't
The head of publishing titan Penguin Random House is defending his company’s deal to acquire rival Simon & Schuster against the government’s claim it would thwart competition
7:30PM ( 14 hours ago )
AP Business - Corporate News
Pacific rim economies in doldrums, sapped by inflation, war
Economies in the Asia-Pacific are forecast to hit the doldrums this year as decades-high inflation and the war in Ukraine add to uncertainty and the aftereffects of the pandemic
6:25AM ( 3 hours ago )
China sanctions Pelosi, sends 100 warplanes to Taiwan drills
China says more than 100 warplanes and 10 warships have taken part in joint live-fire military drills surrounding Taiwan over the past two days
5:57AM ( 4 hours ago )
World stock markets mixed ahead of US jobs data
Global stock markets and Wall Street futures are mixed ahead of an update on the health of the U.S. jobs market while the Federal Reserve weighs whether more rate hikes are needed to cool surging inflation
5:24AM ( 4 hours ago )
AP Business - Economy
WNBA's Griner convicted at drug trial, sentenced to 9 years
A judge in Russia convicted American basketball star Brittney Griner of drug possession and smuggling
10:27PM ( 11 hours ago )
US stocks mixed amid earnings, economic updates
Stocks were mixed in afternoon trading on Wall Street Thursday as investors continued to review the latest updates on the economy and corporate earnings
1:40PM ( 20 hours ago )
US stocks remain mixed amid earnings, economic updates
Stocks were mixed in morning trading on Wall Street Thursday as investors continued to review the latest updates on the economy and corporate earnings
10:43AM ( 23 hours ago )
AP Business - Financial Markets
Amazon to buy vacuum maker iRobot for roughly $1.7B
Amazon on Friday announced it has entered into an agreement to acquire the vacuum cleaner maker iRobot for approximately $1.7 billion
9:53AM ( 26 minutes ago )
China halts climate, military ties over Pelosi Taiwan visit
China says it is canceling or suspending dialogue with the U.S. on a range of issues from climate change to military relations and anti-narcotics efforts in retaliation for a visit this week to Taiwan by U.S. House Speaker Nancy Pelosi
9:48AM ( 32 minutes ago )
Meta mum on election misinformation efforts as midterms loom
Facebook owner Meta is quietly curtailing some safeguards designed to thwart voting misinformation or foreign interference in elections even as the U.S. midterms approach
9:47AM ( 33 minutes ago )
Israel strikes Gaza amid soaring tensions with militants
Israel says it is striking Gaza and declaring a “special situation” on the home front after days of tensions following the arrest of a senior Palestinian militant in the occupied West Bank
9:45AM ( 34 minutes ago )
From Mecca to the Vatican, exploring sacred sites with VR
Worshippers, tourists and visitors around the world are increasingly joining virtual reality spiritual trips to some of Earth’s most sacred sites
9:33AM ( 47 minutes ago )