The US economy added a better-than-expected 428,000 jobs in April, with the unemployment rate remaining at a low 3.6 percent, the Labor Department reported.
AFP
May 06, 2022 / 07:35 PM IST
Representative Image (Reuters)
Wall Street stocks tumbled again early Friday, extending the rout in prior sessions rout amid worries over higher interest rates as investors digested solid US hiring data.
The US economy added a better-than-expected 428,000 jobs in April, with the unemployment rate remaining at a low 3.6 percent, the Labor Department reported.
But markets remain anxious over likely slower growth in the wake of the Federal Reserve’s move to hike interest rates this week and pledges for more rate hikes in the months ahead.
The yield on the 10-year US Treasury note, a proxy for interest rates, rose further above three percent early Friday.
About 20 minutes into trading, the Dow Jones Industrial Average was down 1.3 percent at 32,575.41.
The broad-based S&P 500 fell 1.6 percent to 4,082.42, while the tech-rich Nasdaq Composite Index slid 2.2 percent to 12,044.63.
Major indices dropped more than three percent Thursday as markets reconsidered Wednesday’s rally after the Federal Reserve announced a half-point interest rate increase, but ruled out a three-quarter point hike.
Even so the central bank said it will continue to raise borrowing costs to try to cool the economy and get a handle on soaring inflation.
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