US stocks dip after poor jobs data
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Trader working on the floor of the New York Stock Exchange, in New York City.
PHOTO: REUTERS
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- Wall Street stocks declined due to concerns about weak US labour data, balanced by hopes for Federal Reserve monetary easing later this month.
- The Dow fell 0.5%, the S&P 500 dropped 0.3%, and Nasdaq slipped slightly; Oxford Economics expects a rate cut in September.
- Tesla rose 3.6% and Broadcom surged 9.4%, but Lululemon Athletica sank 18.6% due to disappointing results, according to Briefing.com.
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NEW YORK - Wall Street stocks finished lower on Sept 5 as markets grappled with worries about the latest weak US labour market data, which was offset somewhat by expectations for Federal Reserve monetary easing.
The US economy added just 22,000 jobs
Analysts said the data added more certainty that the Fed would cut interest rates later this month and probably again in subsequent meetings this year.
Stocks initially rose on the data, but soon tripped into the red, with the Dow Jones Industrial Average losing 0.5 per cent to 45,400.86.
The broad-based S&P 500 shed 0.3 per cent to 6,481.50, while the tech-rich Nasdaq Composite Index slipped less than 0.1 per cent to 21,700.39.
Oxford Economics moved up its projection for a Fed rate to September after previously predicting one in December.
“We don’t know how much longer this slowing of hiring is going to last,” said Mr Art Hogan, of B. Riley Wealth Management.
Among individual companies, Tesla rose 3.6 per cent after announcing a new compensation package for CEO Elon Musk
Broadcom surged 9.4 per cent as it reported strong results and offered a positive outlook due to continued strength in artificial intelligence ventures.
But Lululemon Athletica sank 18.6 per cent on disappointment with the company’s results. Briefing.com said the results show how the company’s exposure “to the softening US consumer and to an increasingly competitive athletic wear landscape.” AFP
