US STOCKS-Wall St futures slide after robust November jobs report
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Dec Reuters – U.S. stock index futures fell sharply on Friday as higher-than-expected job additions in November poured cold water on investor expectations of the Federal Reserve easing its aggressive monetary policy tightening.
The Labor Department s jobs report showed nonfarm payrolls rose by, compared with an estimated, as U.S. employers hired more workers than expected in November and raised wages despite mounting worries of a recession.
This is an employment market that continues to remain hot and the wage gains are going to be out of their comfort zones, said Jason Pride, chief investment officer for private wealth at Glenmede in Philadelphia.
A hotter labor market means the Fed is going to stay on its tightening campaign or remain higher for longer which is not going to be taken well by the overall economy or the markets.
Wall Street indexes closed mixed on Thursday following a sharp rally the day before sparked by Fed Chair Jerome Powell s comments on scaling back interest rate hikes as early as December.
Thursday s moves followed a mixed bag of economic data, including the personal consumption expenditure index, the Fed s preferred inflation metric, which was better than expected, while manufacturing activity shrank in November for the first time in – years.
Investors now see an % chance that the U.S. central bank will increase interest rates by basis points in December, down from % before the jobs data was published on Friday.
The rate-setting Federal Open Market Committee meets on Dec. -, capping a volatile year that saw the central bank respond to the fastest outbreak of inflation since the s, with the fastest increase in interest rates since then to try to offset it.
Growth and technology companies such as Apple and Nvidia Corp fell .% and .%, respectively, in trading before the bell, as rising Treasury yields pressured the rate-sensitive mega-cap stocks.
At: a.m. ET, Dow e-minis were down points or .%, and S&P e-minis were down. points, or .%, and Nasdaq e-minis were down points or .%.
Semiconductor company Marvell Technology tumbled .% in premarket trading after quarterly earnings and revenue missed expectations. Reporting by Shubham Batra, Shashwat Chauhan, Ankika Biswas, and Bansari Mayur Kamdar in Bengaluru; Editing by Shounak Dasgupta.