US Stocks Affected By Good Employment Data Report
The United States government said that companies within the US hired 295,000 more employees in the month of February in the just released Job data report on Friday. This exceeded the forecasted value made by economical analyst, and also the decrease in the jobless rate, instigated the hope of the Feds hiking the interest rates quicker than planned.
At the financial market following the release of the good employment data on Friday, Dow Jones decreased to 17,856.78, sliding 278.94 down at a percentage of 1.5 down. Nasdaq composite dropped to 4,927.37, falling 55.44 down at a percentage of 1.1 down. Then, the 500 index of Standard and Poor decreased to 2,071.26, sliding 29.78 down at a percentage of 1.4 down. This shows a decrease in stocks after the strong job data release.
The US dollar increased and the US Treasuries dropped because financial investors are quite expectant of a sooner increase in interest rate for the first time in about ten years – This expectation has deflated stocks in the US.
Bahl and Gaynor’s portfolio manager, Jim Russell stated that – “We’re moving to another chapter here …Certainly, the number does put pressure on the Fed to move.” By this he meant that the increase in employment data should show the Feds that their plan to keep interest rates closer to zero for a long while now has actually helped economical growth, so it is time to move up the interest rate.
Stocks started lower, and the losses increased all through Friday. At the end of Friday’s trading the 500 index of Standard and Poor decreased to its greatest one day loss in two months.
Still on Friday the US bonds droped because of the suspected interest rate increase in June. The increase on the Treasury note skyrocketed to 2.25 percent from the late Thursday value of 2.12 percent.
At the close of the financial market on Friday the top losers were stocks of firms with the highest dividends, which included firms involving with real estate, utilities and also telecommunication. These firms gain from low interest rates on bonds, so the suspected hike in interest rates will cause investors to avoid them, hence reducing their stocks.