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Unexpected spike in jobs report causes pessimism at stock market

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The New York Stock Exchange opened Friday at a loss. Investors on Wall Street responded to the US government’s jobs report. According to the report, 528,000 new jobs were created in July in the world’s largest economy. That was much more than economists had expected.

Job growth in the United States plays an important role in the interest rate policy of the Federal Reserve. A strong labor market gives the US central bank more room to continue to raise interest rates sharply in the fight against high inflation.

The Dow Jones Industrial Average fell 0.5% to 32,578 points. The broad S & P 500 fell 0.6 percent to 4126 points and technology benchmark Nasdaq lost 0.9 percent to 12,607 points.

Apple is down 0.8%. According to the Japanese business newspaper Nikkei, the iPhone maker has asked its suppliers to comply with Chinese customs requirements regarding deliveries between Taiwan and China in order to avoid being stopped. For example, the Taiwanese parts must have a label Made in ‘Taiwan, China’ or ‘Chinese Taipei’.

Tesla fell 1.7 percent. The shareholders of the electric car manufacturer have approved the proposed split of the share. In addition, CEO Elon Musk announced that he may be able to announce the arrival of a new Gigafactory this year.

 




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