Wall Street’s main indexes edged lower on Friday after data showed the economy added jobs at a hot pace last month, addding to fears that the U.S. Federal Reserve could keep raising interest rates higher for longer in its fight against rampant U.S. inflation.
The Labor Department’s nonfarm payrolls report showed 517,000 job additions in January, almost three times expectations of 185,000 additions.
“Whenever we see these big numbers, the fear of the Fed comes back with a vengeance because people are probably afraid that the Fed is going to push things even further than what they have, running the risk of not soft landing, but more of a car crash,” said Brian Jacobsen, senior investment strategist for Allspring Global Investments.
Money markets expect the U.S. central bank to hike rates two more times before stopping, after the Fed raised its target rate by 25 basis points on Wednesday. Rates are seen peaking at 4.95% by June, compared with 4.91% before the data.
Worries of higher rates for longer amplified the downbeat mood set by disappointing results from megacap growth companies.
Apple Inc forecast another revenue decline at the start of the year, but its shares reversed course to trade 3% higher… In a bright spot, Tesla Inc jumped 5.6%, boosted by strong January electric vehicle sales in China.
MacDailyNews Take: Apple is currently trading at $156.91.
About one month ago:
In early Wednesday trading, Apple shares were down $0.46 (-0.35%) to $129.57. (Sub-$130!) Yummy! – MacDailyNews, December 28, 2022
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