The U.S. employment report was mixed and failed to reassure investors whether the Federal Reserve (Fed) will avoid accelerating the pace of tightening. The major U.S. stock indexes opened lower on Friday (10th). In addition, the current market focus has shifted to the banking industry, and traders are worried that the expansion of bankruptcies in the banking industry may cause financial turmoil.
before the deadline,Dow Jones Industrial Averagefell nearly 180 points or nearly 0.6%,Nasdaq Composite Indexfell nearly 150 points or 1.3%,S&P 500 Indexfell nearly 1%,Philadelphia SemiconductorThe index fell nearly 1.6 percent.
The latest U.S. non-farm payrolls in February far exceeded expectations, but unemployment climbed and wage growth slowed.S&P 500 IndexFutures erase earlier losses to turn higher, U.S. Treasury yields anddollar indexBoth fell. The jobs report was a mixed bag, failing to reassure investors that the Fed will avoid accelerating the pace of tightening.
However, the market focus has turned to the news of the US banking industry. Silicon Valley Bank (Silicon Valley Bank), which fell 60% a few days ago, has temporarily suspended trading, but the storm is spreading to other financial companies.
According to data released by the U.S. Department of Labor, the United States added 311,000 non-agricultural jobs in February, far exceeding market expectations of 205,000, and the revised previous value was 504,000; the unemployment rate climbed to 3.6% from 3.4% in January , The new annual growth rate fell to 4.6%, slightly higher than the previous value of 4.4%, but lower than the expected 4.7%, and a monthly increase of 0.2%, lower than the expected and previous value of 0.3%.
As of 22:00 on Friday (10th) Taipei time:
Focus stocks:
Oracle (ORCL-US) fell 2.98% in early trade to $84.28 per share
Oracle’s revenue in the last quarter was lower than market expectations, mainly because cloud demand growth was not as strong as originally estimated, reflecting that companies are slowing down IT spending in response to the economic outlook. The stock price fell more than 4% before the market.
Gap(GPS-US) fell 8.81% in early trade to $10.56 per share
Apparel manufacturer Gap’s latest financial report shows that due to the global economic downturn, consumers have reduced purchases of clothing and other non-essentials. Last quarter’s revenue was lower than Wall Street’s expectations, and the loss was also higher than market expectations. Shares were down nearly 8% in pre-market trading.
Roblox(RBLX-US) rose 2.40% to $40.90 a share in early trade
Metaverse concept stock Roblox rose more than 3% before the market. Wall Street brokerage Jefferies upgraded Roblox stock from “Hold” to “Buy”. Roblox online game platform will continue to show strong growth, Jefferies said.
Today’s key economic data:
- U.S. non-agricultural employment reported 311,000 in February, 205,000 expected, 504,000 previously revised
- U.S. unemployment rate reported at 3.6% in February, 3.4% expected, 3.4% previously
- The average weekly working hours in the United States in February was 34.5 hours, expected 34.6 hours, and the revised previous value was 34.6 hours
- U.S. average hourly wages rose 4.6% in February, compared with 4.7% expected and 4.4% previously
- U.S. average hourly wages rose 0.2% in February, compared with 0.3% expected and 0.3% previously
- U.S. February labor force participation rate reported at 62.5%, the previous value of 62.4%
Wall Street Analysis:
Bryce Doty, senior portfolio manager and president of Sit Investment Associates, said: “The employment data has greatly relieved investors who were worried that the Fed would raise interest rates by 2 yards (50 basis points). Considering that Fed Chairman Powell is worried that wage increases will lead to inflation. , the data should calm that concern.”
Wall Street analyst Michael Hartnett said the rate hikes of the past year were not the prelude to a stable “Goldilocks economy” that was neither too hot nor too cold, but rather a “hard landing and credit event” Indicates that the market will usher in another risk-off week.