Wall Street falls after jobs data raise fears of rate hikes

All three major US stock indices ended in the red on Friday, after a report on the US labor market breathed new life into bets on further interest rate hikes. Federal Reserve.

The investors of Wall Street reacted negatively to the non-farm payrolls data. Employers in the largest economy hired 263,000 workers in September, more than an expected 250,000. Unemployment fell to 3.5 percent.

The figures supported bets by those who believe that the central bank will continue to increase the size of interest rate hikes to combat inflation at 40-year highs. The performance of fixed income dwarfs that of equities.

main index Dow Jonesmade up of the shares of 30 industrial giants, fell 2.11% to 29,296.79, while the S&P 500 of 500 values ​​fell 2.80% to a record of 3,639.66 points, and the technological Nasdaq 3.80% at 10,652.40 units.

Stocks of technology companies, which are sensitive to high-rate environments because of their valuations on future earnings, led the losses. In the Dow Jones 29 components closed negative and Intel was the worst with -5.37 percent.

The actions of Microsoft Corp y Apple Inc, the two largest mega-caps in the market, lost 5.09% and 3.67%, respectively. The electric car manufacturer Tesla Inc, of the most traded securities, lost 6.32 percent.

Despite these losses, the indices managed to withstand the pressure thanks to two strong rallies earlier in the week. The Dow Jones moved 1.97%, while the S&P 500 advanced 1.51% and the Nasdaq posted a moderate gain of 0.73 percent.

jose.rivera@eleconomista.mx