US Stocks Turn Volatile After Jobs Data
2:41 pm Friday, September 02nd, 2022
A rally in world stocks fizzled on Friday while the U.S. dollar retreated from a 24-year high on the yen, after data that showed the U.S. labour market is starting to loosen failed to allay investors fears about aggressive interest rate hikes from the Federal Reserve.
The early positive disposition was predicated on a belief that the softer employment data could compel the Fed to take a less aggressive rate-hike path.
There was broad based buying interest in the early going that was also supported by the idea that the market is oversold on a short-term basis and due for a bounce.
The mega cap stocks have pivoted from a leadership position and have paced the downside move following the Gazprom news which came shortly after G7 members agreed to impose a price cap on Russian oil. The Vanguard Mega Cap Growth ETF (MGK) is down 0.7% while the Invesco S&P 500 Equal Weight ETF (RSP) trades flat.
The advance-decline line favors advancing issues by a 2-to-1 margin at the NYSE and and is close to even at the Nasdaq.
As the market moves lower, many S&P 500 sectors now trade in the red. Only energy (+2.3%), materials (+1.0%), and financials (+0.7%) maintain gains on the day.
Semiconductors traded ahead of the broader market at the open, but now trail the major indices. The PHLX Semiconductor Index is down 0.5%.
Treasury yields fell noticeably after the jobs report, lending support to the buying efforts. The 2-yr note yield is down 11 basis points to 3.42% while the 10-yr note yield is down four basis points to 3.23%.
