The Dow Jones Industrial Average closed lower on Friday (June 3) as investors were worried. Stronger-than-expected US employment disclosures Will encourage the US Federal Reserve (Fed) to continue raising interest rates further.
The Dow Jones Industrial Average closed at 32,899.70, down 348.58, or -1.05%, the S&P500 closed at 4,108.54, down 68.28, or -1.63%, and the NASDAQ closed at 12,012.73, down 304.16, or -2.47%.
in this week The Dow and Nasdaq were down regarding 1%, while the S&P500 was down 1.2 percent.
Ten of the 11 S&P500 indexes closed lower, with luxury and tech stocks down 2.85% and 2.48 percent respectively, but energy stocks rose 1.4 percent on oil prices.
The US Department of Labor said on Friday that Non-farm payrolls increased by 390,000 in May. 325,000 jobs were higher than analysts’ expectations, while the unemployment rate held steady at 3.6%, above analysts’ expectations of 3.5%. The labor market is tight.
Stronger-than-expected jobs data raises concerns regarding the Fed’s monetary policy tightening. by the market adjusting to the forecast that The Fed will raise interest rates by 0.50% in June and July.
“Employment growth is too strong for the Fed,” said Chris Low, chief economist at FHN. Financial stated
“As long as the employment expansion is faster than the labor force expansion trend, The Fed will use its monetary tightening strategy to deal with the economic cycle,” he said.
Apple stock decline Inc. and Tesla stock pull the market down Apple Inc shares fell 3.86 percent following Morgan Stanley said that Apple’s app store is showing signs of slowing growth.
Tesla shares fell 9.22 percent following Elon Musk sent an email to executives saying: He felt terrible regarding the economy. And it needed to cut Tesla’s workforce by regarding 10%.
Chip stocks also put pressure on technology stocks. Micron fell 7.20 percent following Piper Sandler revised its investment recommendation on Micron from “Keep investment weight” is “weight loss investment”, indicating price pressures and weak demand.
