Friday’s jobs report follows a mass of data showing a slowdown across the US economy. Reports earlier this week said business activity in both the US services and manufacturing sectors contracted last month, turning in weaker readings than economists expected. And US shoppers at the lower end of the income spectrum have been showing how difficult it is to keep up with still-rising prices, as balances owed on credit cards swell.
“What matters for long-term investors is whether fears of a recession become a reality,” said Brian Jacobsen, chief economist at Annex Wealth Management. “We think it’s unlikely we’ll see a recession this year or next, but that doesn’t mean the markets won’t fear one.”
On Wall Street, gold miner Newmont rose 2.4 per cent for one of the larger gains in the S&P 500. It benefited from a rise in the price of gold, which usually strengthens when interest rates fall. It’s the flip side of when rates are rising and bonds are paying higher yields, which can pull investors away from gold because it pays its holders nothing.
Gains for some big, influential stocks also helped support the market, even though the majority of stocks within the S&P 500 fell. Meta Platforms jumped 5.9 per cent, and Apple added 2.2 per cent.
Amazon rose 1.2 per cent after the announcement of a deal where the parent company of Saks Fifth Avenue will buy Neiman Marcus Group for $US2.65 billion ($3.9 billion). Amazon will hold a minority stake in the combined company.
On the losing end of Wall Street were companies tied closely to cryptocurrency activity, as bitcoin briefly tumbled below $US54,000 from nearly $US63,000 early this week before recovering a bit. The cryptocurrency’s value fell roughly back to where it was in February.
Coinbase Global slipped 0.6 per cent, and Robinhood Markets fell 1 per cent.
Loading
In stock markets abroad, London’s FTSE 100 fell 0.5 per cent after UK voters ushered in a new regime by throwing out Conservatives in this week’s national election.
The United Kingdom experienced a run of turbulent years during Conservative rule that left many voters pessimistic about their country’s future. The UK’s exit from the European Union followed by the COVID-19 pandemic and Russia’s invasion of Ukraine battered the economy. Rising poverty and cuts to state services have led to gripes about “Broken Britain.”
In Asia, Japan’s Nikkei 225 topped the 41,000 level early on Friday to rise above its record closing level set on Thursday, but it ended the day marginally lower.
AP
The Market Recap newsletter is a wrap of the day’s trading. Get it each weekday afternoon.