On Friday, all three key indices of Wall St. had closed out the session lower with tech-heavy Nasdaq bearing the heaviest brunt, as US Labor Department’s US nonfarm payrolls data had fallen far short of expectation, stoking fears that a much-squeezed US labor market might prompt the US Federal Reserve to speed up its bond-tapering program while stemming a mass-scale gyration towards value and defensives from growth stocks.
In point of fact, Wall Street had opened up Friday’s Wall Street in an upbeat tone following a record US services sector activity data released a day earlier, however, as US November nonfarm payrolls had unveiled the economy had added only 210,000 jobs last month, several analysts had raised questions on whether the US economy had been closing in on a maximum employment, which in effect would provoke the US Fed to accelerate its bond-taper program.
Nevertheless, US unemployment rate fell to a fresh 21-month low of 4.2 per cent with rising wages adding to further inflationary pressure, while Fed’s Bostic was quoted saying that the US Federal Reserve would seek to quicken its bond-taper program during December 14-15 policy meet, eventually leading to an upscaled doldrum in afternoon US trading.
Wall St. ends lower as volatility scales higher
Citing statistics, in the day’s Wall St. round-off, trade-sensitive Dow fell 0.17 per cent to 34,580.08 and benchmark S&P 500 shed 0.84 per cent to 4,538.43, while tech-heavy Nasdaq was nudged as much as 1.92 per cent lower to 15,085.47.
Meanwhile, addressing to a tightened US labor market, a chief strategist at Interactive Brokers, Steve Sosnick said, “There's not enough in the jobs report to dissuade the Fed from accelerating the taper and leaves the door open for a quicker rate hike than the market might have been anticipating”.