U.S. Stocks Fall After Strong Jobs Report for September

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U.S. Stocks Fall After Strong Jobs Report for September
Credit: © Reuters.

By Liz Moyer

Investing.com -- U.S. stocks opened lower on Friday after investors took in the latest report on jobs that showed a still-strong labor market.

At 9:58 ET (13:58 GMT), the Dow Jones Industrial Average was down 478 points or 1.6%, while the S&P 500 was down 2.1%, and the NASDAQ Composite was down 2.7%.

The unemployment rate dropped to 3.5% in September from 3.7% the prior month, and the growth in jobs came in slightly above expectations. That is despite efforts by the Federal Reserve to slow down demand. Jobs rose 263,000 last month, while analysts were looking for growth of 250,000.

Evidence of a still-tight labor market means the Fed doesn’t have a reason to ease off its big interest rate increases, as some investors had hoped. Some fear an aggressive Fed will overshoot its efforts to cool the economy and tip the U.S. into a recession.

The odds are now 83% that there will be another 0.75 percentage point rate hike in November, according to Reuters.

Shares of Advanced Micro Devices (NASDAQ: AMD ) fell more than 8% after it warned that revenue will fall $1 billion short of its previous guidance on a slump in PC sales. That disclosure weighed on other chip stocks, including Intel Corporation (NASDAQ: INTC ), down 4%, and Micron Technology (NASDAQ: MU ), down 2.8%.

Oil was rising. Crude Oil WTI Futures was up 2.1% to $90.34 a barrel, while Brent Oil Futures rose 1.9% to $96.25 a barrel. Gold Futures fell 0.8% to $1706.

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  • Shah Dhaval @Shah Dhaval
    Dow will be zero in next working 53 days ,
    Like 3
  • Shah Dhaval @Shah Dhaval
    just fed we all request you , just say you are not able to manage inflation and doing one shot rate hike by 3% Dow will be zero in 5 min candel then you can enjoy your sort profit
    Like 2
  • venkat Reddy @venkat Reddy
    no fed rate almost 23000dow just one month
    Like 4
  • Bhupinder Singh @Bhupinder Singh
    When is next fed meeting on fed rate
    Like 1
    • prashanth denso @prashanth denso
      November
      Like 2
    • RAJESH SHARMA @RAJESH SHARMA
      Looks like that there is a long way for market to recover in longer term. Volatility will continue and will give opportunity to invest in good fundamental stocks.
      Like 0
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