Stocks Slump After September Jobs Report
2:43 pm Friday, October 07th, 2022
Today’s trade is distinctly negative following the September Employment Report. The market has been in retreat-mode after the jobs report showed continued strength in the labor market, which stoked concerns about the Fed remaining aggressive with its rate hike path.
Mega cap and semiconductor stocks lead the downside charge. The Vanguard Mega Cap Growth ETF (MGK) is down 3.5% versus a 2.2% loss in the Invesco S&P 500 Equal Weight ETF (RSP) and a 2.5% loss in the S&P 500. The PHLX Semiconductor Index is down 5.3% on the day, narrowing this week’s gain to 3.0%. This follows Advanced Micro Devices (AMD) slashing its revenue and gross margin guidance for Q3, citing a “significantly” weaker PC market.
Heavy losses in semiconductor stocks weigh down the S&P 500 information technology sector (-3.8%), which is buried in last place among the 11 sectors.
On the flip side, energy (+0.5%) is alone in positive territory thanks to the steady rise in oil prices. WTI crude oil futures are up 4.3% to $92.20/bbl.
Decliners lead advancers by a greater than 5-to-1 margin at the NYSE and a 4-to-1 margin at the Nasdaq.
Treasury yields are noticeably higher today, acting as another headwind for equities. The 2-yr note yield is up seven basis points to 4.30% and the 10-yr note yield is up four basis points to 3.86%.
September Nonfarm payrolls increased by 263,000 (250,000) following an unrevised 315,000 increase in August
September Nonfarm private payrolls increased by 288,000 (consensus 275,000) following a revised 308,000 increase in August (from 308,000)
