The Wall Street benchmark S&P 500 lost 1.2% on Thursday, while the tech-heavy Nasdaq Composite dropped 1.5%, wiping out the small gains it recorded in the previous session © Courtney Crow/Exchange New York Stock Exchange/AP
US stocks and Treasuries slide on Thursday, while the dollar strengthens, after better-than-expected jobs report showed labor market resilience ahead of positive campaign by the Federal Reserve to address high inflation.
Wall Street The benchmark S&P 500 lost 1.2%, while the tech-heavy Nasdaq Composite dropped 1.5%, erasing the small gains it recorded in the previous session. Meanwhile, Amazon shares fell 2.4% a day after the e-commerce giant announced plans to lay off 18,000 employees.
The drop came after US private-sector employment rose by 235,000 in December, far exceeding estimates, according to payroll processor ADP. Economists polled by Reuters had expected a gain of 150,000, suggesting the US labor market remains tight even as the economy There are signs of slowing down. Meanwhile, initial jobless claims for the final week of December fell to 204,000 from the previous week’s revised 223,000.
The ADP figures support the view — expressed in minutes of the Federal Open Market Committee’s December meeting, released Wednesday — that labor market conditions are in the largest labor market. world economy are exacerbating pressures to raise wages and prices.
“Although the tightening is done so far, [FOMC] Michael Gapen, chief US economist at Bank of America, said the labor market remains tight and unsuitable for price stability.
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