NEW YORK ( Associated Press) – Stocks opened lower on Wall Street on Friday, putting the index in the red again for the week. Big technology companies and Tesla suffered the most in the early stages. Treasury yields were higher after the government reported stronger-than-expected recruitment last month, keeping the Federal Reserve on track for a series of extra-large interest rate hikes aimed at bringing inflation under control and slowing the economy. . The S&P 500 fell 1.1% and the tech-heavy Nasdaq was down 1.9%. The Dow dropped 0.7%. The yield on the 10-year Treasury, which helps determine interest rates on mortgages, rose to 2.96%.
This is a breaking news update. Below is an earlier story from Associated Press.
NEW YORK ( Associated Press) – Wall Street highlighted a healthy job market ahead of the opening bell on Friday, as the Federal Reserve raises interest rates to fight inflation, despite concerns about a weakening economy in the US government’s monthly jobs report. .
Dow Industrialists futures fell 0.6% while S&P 500 futures fell 0.8%.
Major US benchmarks are rising this week at Friday’s open, aiming for a second straight week of gains after seven weeks of losses.
US employers added a healthy 390,000 jobs in May, well ahead of economists’ forecast of 325,000, but well below the level of more than 400,000 that the economy has produced each of the past 12 months. The Labor Department said on Friday that the unemployment rate remained unchanged at a low 3.6%.
This strong environment has developed despite inflation hovering near four-decade highs and concerns about higher lending rates and a possible slowdown. Yet employers generally remain optimistic. Consumers have maintained their spending despite their acute concerns about high prices.
Business has been choppy in recent days as investors worry about inflation and interest rate hikes by the US Federal Reserve to fight it. Wall Street is concerned that raising Fed interest rates could greatly slow economic growth and potentially send the economy into recession.
Meanwhile high inflation is eating into corporate profits, while the war in Ukraine and COVID-19 sanctions in China have also weighed on the markets.
Between gains and losses in European stocks at noon, France’s CAC 40 and Germany’s DAX both rose less than 0.1%. Business was closed in Britain due to a national holiday.
Markets were also closed for the Dragon Boat Festival, a national holiday in China. Benchmarks in Rest of Asia moved higher, fueled by an overnight rally on Wall Street.
Japan and the US signed an amendment to the “Beef Safeguard” mechanism under the US-Japan trade agreement that would help US beef producers meet Japan’s growing demand for high-quality beef. Both sides said the deal would reduce the chances of Japan imposing safeguard duty on American beef. This happened in early 2021.
“Together, the United States and Japan are demonstrating our commitment to working together on shared priorities to achieve tangible, economically meaningful results for our peoples,” said US Trade Representative Catherine Tai.
Japan’s benchmark Nikkei 225 jumped 1.3% to end at 27,761.57. Australia’s S&P/ASX 200 rose 0.9% to 7,238.80, while South Korea’s Kospi rose 0.4% to 2,670.65.
Bond yields remained relatively stable. The yield on the 10-year Treasury, which helps determine interest rates on mortgages and other loans, was back to 2.93% after a slight decline.
Benchmark US crude rose 54 cents to $117.41 a barrel in energy trading. International benchmark Brent crude rose 61 cents to $118.22 a barrel.
An OPEC meeting on Thursday where oil-producing countries decided to boost some output failed to stabilize energy prices.
Stephen Innes, managing partner at SPI Asset Management, said: “The outcome of the OPEC meeting would be an understatement to disappointing expectations.”
In currency trading, the US dollar rose from 129.87 yen to 130.17 Japanese yen. The Euro is priced at $1.0737, which is less than $1.0752.
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