Volatility dominated US markets on Friday, capping a week marked by choppy trading, quick reversals and a lot of anxiety.
Volatility continued to dominate financial markets, with stocks pushing lower as the latest U.S. jobs data cemented expectations that the Federal Reserve will remain on its rate hike path to fight a stubbornly high inflation.
After a week marked by choppy trading, rapid reversals and heightened anxiety, the S&P 500 failed to stay in the green and fell to its lowest level in about a year. The gauge posted its fifth consecutive weekly decline – the longest losing streak since June 2011. The tech-heavy Nasdaq 100 underperformed. 10-year Treasury yields remained above 3%, while the dollar appreciated. New York gasoline futures settled at a record high.
“The markets have been on a rollercoaster ride,” said Lindsey Bell, chief market and financial strategist at Ally. “There is great uncertainty. A key question for many investors is how much of a hurdle a rapidly rising interest rate environment will pose for equities.
The long-awaited jobs report showed U.S. hiring grew at a healthy pace in April, but a shrinking workforce could increase pressure on employers to increase jobs even further. wages in order to bring workers back. This dynamic will likely complicate the Fed’s struggle to rein in decades-high inflation as central bankers struggle to align labor demand with supply.
Some of the major movements in the markets:
- The S&P 500 fell 0.6% at 4 p.m. PT
- The Nasdaq 100 fell 1.2%
- The Dow Jones Industrial Average fell 0.3%
- The MSCI World index fell 1%
- The Bloomberg Dollar Spot Index rose 0.2%
- The euro was little changed at $1.0547
- The British pound fell 0.2% to $1.2342
- The Japanese yen fell 0.3% to 130.54 per dollar
- The yield on 10-year Treasury bills rose eight basis points to 3.12%
- Germany’s 10-year yield rose nine basis points to 1.13%
- The UK 10-year yield rose three basis points to 2.00%
- West Texas Intermediate crude rose 2.1% to $110.49 a barrel
- Gold futures rose 0.3% to $1,881.60 an ounce
–With help from Sunil Jagtiani, Cecile Gutscher, Denitsa Tsekova and Vildana Hajric.