Tech Stocks Lead 3% Sell-off After Jobs Report

Barry Adams
29 Sep, 2022
New York City

Stocks fell sharply and major averages reversed yesterday's gains after recession and rate-hike worries resurfaced. 

The stronger-than-anticipated jobless report reinforced the strength in the labor market and provided one more signal to the Fed in continuing its campaign to lift rates. 

Seasonally adjusted weekly initial jobless claims declined 16,000 to 193,000 in the week ending September 24, the Department of Labor said Thursday. 

Unadjusted initial claims fell 12,642 to 156,060 led by significant declines in Michigan (5,674), New Jersey (1,521) and New York (1,266). 

The 4-week moving average declined 8,750 to 207,000. 

The S&P 500 index fell 1.9% to 3,647.40 and the Nasdaq Composite index dropped 2.9% to 10,721.95.   

Crude oil rose 23 cents to $82.28 and natural gas decreased 19 cents to $6.77 a thermal unit.  

The yield on 2-year Treasury notes increased to 4.21%, on 10-year Treasury notes inched up to 3.80% and 30-year bonds advanced to 3.75%. 

 

European Markets Resume Slide On Recession Worries 

In Europe, benchmark indexes resumed their declines after recession worries gripped the market sentiment. 

The DAX index declined 1.6% to 11,995.17, the CAC-40 index dropped 1.44% to 5,681.94 and the FTSE 100 index fell 1.2% to 6,919.76. 

Brent crude rose 80 cents to $90.111 a barrel and TTF natural gas futures plunged 9.9% to 186.50 megawatt per hour. 

The euro inched higher to 97.16 U.S. cents and the British pound rebounded slightly to $1.093. 

 

Hong Kong Extend Losses Ahead of Week of Holiday

In Asia, stocks in China benchmark indexes ended flat ahead of 7-day Golden Week holidays between October 1 and 7. 

The Shanghai Composite Index eased 0.1% lower to 3,041.20, erasing most of the early gains in the day. 

The  Hang Seng Index ended down 0.5% to 17,165.87, after dropping to the low last seen in October 2011.  

The Hang Seng index has lost about 40% in the last five years. 

In Tokyo, the Nikkei 225 index gained 1.0% to 26,422.05 and the broader Topix increased 0.7% to 1,868.80.

Pharmaceuticals and resource sector stocks led the gainers. 

The Japanese yen held steady at 144.52 to a dollar. 

Benchmark indexes in Mumbai turned lower ahead of the rate decision from the Reserve Bank of India on Friday. 

The RBI is expected to lift the key lending rate by at least 40 basis points and stem the slide in the rupee. 

The Indian rupee dropped to a new low of 81.80 to a dollar.