Friday, August 5, 2022

US stocks fall more than 200 points in early trade, jobs report suggests Fed may continue aggressive rate hikes

US shares fell more than 200 points in early trading on the 5th as the U.S.employmentThe report was better than expected, showing a stronger labor market, which could also mean the Fed will continuerate increase,

Dow Jones IndustriesindexIn early trading on the 5th, it fell 226 points, or 0.69%; The S&P 500 fell 0.97%; Nasdaq fell 1.29%; The Philadelphia Semiconductor Index fell 1.78%; TSMC ADR rose 0.65%.

The US Department of Labor said on the 5th that non-farm wages increased by 528,000 in July, much higher than the 258,000 expected by the Dow Jones; The unemployment rate fell to 3.5%, lower than the expected 3.6%. Wage growth was also better than expected, up 0.5% month-on-month and 5.2% year-on-year, suggesting that higher inflation could still be a problem.

CNBC reported that as the Fed continued to raise interest rates to curb high inflation, markets expected job growth to slow, but the latest report showed that the U.S. 3 yards or 1 cent at your next decision-making meeting.

“Today’s strong employment data means three rate hikes in September are almost a foregone conclusion,” said Ya Xia, chief global strategist at Principal Global Investors. In addition to the still tight labor market, wage growth is also uncomfortably strong. “


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