Wall St. edges lower after September US nonfarm payrolls miss



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Wall St. edges lower after September US nonfarm payrolls miss

On Friday, all three key indices of Wall St. had wrapped up the session lower, as US Labour Department’s closely monitored employment report had revealed that the US economy had created 194,000 jobs last month compared to an analysts’ forecast of 500,000 positions, adding strains on investors’ optimism that the latest US nonfarm payrolls miss might stem a change of heart in US Federal Reserve policymakers, who were reportedly seeking a tapering of fiscal support for the economy as early as by November this year alongside a rate-hike by mid- to late-2022.

Nevertheless, soaring commodity prices had charged the bulls in benchmark S&P 500, but had botched to outweigh a steep faltering in growth stocks with real estate and utilities bearing the heaviest brunt, wrapping up the day down by 1.1 per cent and 0.7 per cent respectively.

Nonetheless, if truth is to be spoken, all three key indices of Wall Street were trading in an ambivalent tenure before release of September non-farm payrolls data, which eventually had yielded a late-afternoon sell-off wave.

However, a swathe of silver linings in US nonfarm payrolls data including a sharp depreciation in layoffs and unemployment rate alongside an increase in US hourly wages and working hours amid a steep shortage of available workers, had pared some of the losses.

Wall St. ends lower as Sept. nonfarm payrolls miss estimates

Citing statistics, in the day’s Wall St. round-off, trade-sensitive Dow edged 0.03 per cent lower to 34,746.25 and benchmark S&P 500 shed 0.19 per cent to 4,391.35, while tech-heavy Nasdaq was nudged as much as 0.51 per cent lower to 14,579.54.

Meanwhile, addressing to the impacts of latest employment data on US Fed’s stratagem to taper its fiscal support by November, a Managing Director at BK Asset Management in New York, Kathy Lien, said, “I think that the Federal Reserve made it very clear that they don’t need a blockbuster jobs report to taper in November. I think the Fed remains on track”.