Markets drop Thursday after report shows resilient job market

After two days of strong buying to start the final quarter of 2022, the market took a turn for the worse on Wednesday after a report showed 208,000 new jobs in September.

NEW YORK – Wall Street futures fell on Thursday on continued concerns that a rebounding job market will keep the Federal Reserve on track for another major interest rate hike early next month. .

Dow Jones Industrial Average and S&P 500 futures both fell 0.4%.

After two days of strong buying to start the final quarter of 2022, the market took a turn for the worse on Wednesday after an ADP report showed employers added 208,000 jobs in September. Investors worry that could invigorate Fed officials, who say more rate hikes are needed to cool inflation that is at a four-decade high.

“The economy is too strong for the Fed to turn around,” Oanda’s Edward Moya said in a report.

Although the government jobs data released on Tuesday suggests the jobs market may be cooling, investors will likely be more affected by the weekly jobless report coming later in the day. Thursday and the key September jobs report is due on Friday.

Wall Street analysts expect the government to report that the US economy added 250,000 jobs last month, well below the 487,000-month average over the past year, but still a single one. Strong numbers indicate a healthy labor market despite chronic inflation and two consecutive quarters. US economy shrinks.

At midday in Europe, London’s FTSE 100 was down 0.8 percent, Frankfurt’s DAX lost 0.4 percent and Paris’ CAC 40 was down 0.6 percent.

In Asia, Tokyo’s Nikkei 225 index gained 0.7% to 27,311.30 while the Hang Seng index in Hong Kong lost 0.4% to 18,012.15.

Kospi in Seoul rose 1% to 2,237.86 while Sydney’s S&P ASX 200 lost less than 0.1% to 6,817.50.

New Zealand fell while Southeast Asian markets rallied.

On Wednesday, the S&P 500 lost 0.2%. The benchmark has come out of its strongest two-day rally in 2 and a half years.

The Dow fell 0.1% and the Nasdaq fell 0.2%.

Investors hope data showing a weak economy will convince the Fed and central banks in Europe and Asia to ease up on rate hikes. They worry aggressive action to cool inflation could tip the global economy into recession, but forecasters say it may be premature to expect central banks to shut down.

Fed officials said they were determined to keep raising rates and keep them high until it was clear that inflation had eased.

In the energy market, the price of US benchmark crude oil lost 37 cents to $87.39 a barrel in electronic trading on the New York Mercantile Exchange.

It rose $1.24 on Wednesday to $87.76 a barrel after the energy ministers of Saudi Arabia and other members of the Organization of the Petroleum Exporting Countries agreed to cut production to push the price down.

Oil rose above $110 a barrel after Russia’s February attack on Ukraine but fell back. The decision to support prices could help Moscow maintain earnings after Europe’s decision to cut purchases of Russian crude to punish the Ukraine war took effect in December.

White House press secretary Karine Jean-Pierre accused OPEC of “aligning with Russia”.

Brent crude, the base price for international oil trading, lost 31 cents a barrel to $93.06 in London. It rose $1.57 in the previous session to $93.37.

The dollar strengthened to 144.74 yen from 144.49 yen on Wednesday. The euro weakened from 98.94 cents to 98.63 cents. Markets drop Thursday after report shows resilient job market

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