NEW YORK – Wall Street stocks ended the week with losses on Friday as an early-session rally fizzled following government data indicating employers slowed the pace of hiring in August.
Data showed the US economy added 315,000 jobs last month, which was in line with what economists were expecting, but lower than the 526,000 posted in July.
Stocks initially rose on the report as markets bet the moderating employment situation would ease pressure on the Federal Reserve to hike interest rates.
But markets reversed course midday after Russia’s move to halt natural gas deliveries to Germany sharpened worries over a European recession.
The Dow Jones Industrial Average ended 1.1 per cent lower at 31,318.44.
The broad-based S&P 500 fell 1.1 percent to 3,924.26, while the tech-rich Nasdaq Composite Index shed 1.3 per cent to 11,630.86.
The lower close marks a third straight weekly loss and follows several days of declines after Fed chairman Jerome Powell speech last week saying the central bank will continue act “forcefully” to cool the economy.
“This has been a day which has succumbed to what has been a cautious sentiment throughout the week and really, since the Jackson Hole statement from Chair Powell,” said Bill Northey of US Bank Wealth Management.
“The Federal Reserve is going to carry through on a mission to address inflation at the risk of potentially creating a much weaker economic environment as we conclude 2022 and early 2023,” Northey said. AFP