The Labor Department reported that the US created 256,000 jobs in December, well above the 155,000 that economists surveyed by Dow Jones had anticipated, and the 212,000 in November.
The main Wall Street indices They sink this Friday after employment data that show robustness in the US labor market. With this report expectations of a soon rate cut are diminished of interest on the part of the Federal Reserve.
In that context, the Dow Jones Industrials Index go down a 1.4% until the 42,060.24 points, while the S&P 500 go back a 1.5%, in 5,828.20 points. He Nasdaq sinks a 1.8% until the 19,126.21 points.
Wall Street remained closed on Thursday for a day of mourning in honor of the former president Jimmy Carterrecently deceased. The major indices are preparing to close their second consecutive week in the red, with the S&P 500 having fallen almost 3% from its all-time high reached just a month ago.
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Wall Street falls after bad employment data
All eyes in the market were focused this Friday on the Department of Labor employment report. There, it was reported that The United States created 256,000 jobs in Decemberwell above the 155,000 that economists surveyed by Dow Jones had anticipated, and the 212,000 in November.
Average hourly earnings rose 0.3% on the month, which was in line with forecasts, but the 3.9% 12-month increase was slightly below forecasts and indicates that wage inflation at least It is ceasing to be a factor. The average work week remained stable again at 34.3 hours.
Labor market data became increasingly important when it came to Federal Reserve rate cut pathwhich is increasingly uncertain. Fed funds futures trading suggests a high probability that central bank policymakers will leave rates unchanged at their meeting later this month.
The tool Fedwatch of CME Group mark a mere 2.7% chance of an interest rate cut in January.
Source: Ambito
