aljazeera.com
Economy|Financial Markets
Wall Street ends volatile week lower as investor jitters grow
Wall Street’s ‘fear index’ shot to its highest since January on Friday.
After opening higher, Wall Street spent the rest of the session in the doldrums, and an elevated volatility index highlighted investor anxiety [Brendan McDermid/Reuters]
3 Dec 2021
Wall Street’s major indexes closed lower on Friday, with the Nasdaq Composite Index leading the declines as investors bet that a strong United States jobs report would not slow the US Federal Reserve’s withdrawal of support – all while investors grappled with uncertainty around the Omicron coronavirus variant.
After opening higher, Wall Street spent the rest of the session in the doldrums and an elevated volatility index highlighted investor anxiety.
The Dow Jones Industrial Average fell 0.17 percent to 34,580.08, the S&P 500 lost 0.84 percent to 4,538.43 and the tech-heavy Nasdaq dropped 1.92 percent to 15,085.47.
The US Department of Labor’s report, ahead of the session’s open, showed that while nonfarm job growth rose less than expected in November, the unemployment rate dropped to 4.2 percent, its lowest since February 2020, and wages increased.
Separately, a measure of US services industry activity hit a record high in November.
Both sets of data appeared to influence investor expectations for the Fed’s next move towards tightening its policy. Fed Chair Jerome Powell said this week that the central bank will consider a faster wind-down of its bond-buying programme, prompting speculation that interest rate hikes would also be brought forward.
“There’s not enough in the jobs report to dissuade the Fed from accelerating the taper and [it] leaves the door open for a quicker rate hike than the market might have been anticipating,” said Steve Sosnick, chief strategist at Interactive Brokers.
On top of this, he pointed to concerns that the Omicron variant of the coronavirus appeared to be spreading faster than the more prevalent Delta variant.
The number of countries reporting Omicron cases kept rising on Friday, but there was still little clarity on the severity of the disease or the level of protection provided by existing COVID-19 vaccines.
The S&P, the Dow and the Nasdaq all registered declines for a week in which they swung wildly from day to day as investors reacted to Omicron news and Powell’s comments.
The S&P’s drop of 1.2 percent was its second weekly decline in a row while the Nasdaq fell 2.62 percent, also its second straight week of losses. The Dow dropped 0.92 percent in its fourth consecutive weekly decline.
In a clear indication of investor nerves, Wall Street’s fear gauge, the CBOE Market Volatility index, went above 35 in afternoon trading for the first time since late January. It pared some gains, however, to close up 9.7 points at 30.67.
Meanwhile, the S&P sector outperformers were defensive sectors consumer staples, closing up 1.4 percent; and utilities, adding 1 percent; followed by healthcare, which climbed 0.25 percent.
By the end of the session, consumer discretionary, down 1.8 percent, was the biggest loser, followed by technology, which fell 1.65 percent.
Decliners included heavyweights such as Tesla, down 6 percent, and Nvidia, down 4 percent and both Apple Inc and Microsoft losing more than 1 percent.
“It’s hard to argue that stocks with such huge valuations are defensive,” said Interactive Brokers’ Sosnick.
And with large-cap technology stocks having avoided a recent deterioration in the broader markets, Sosnick said: “That’s catching up to those stocks.”
The economically sensitive Dow fell less than its peers during the session, while other cyclical sectors like industrials and materials also outperformed.
DocuSign Inc closed down 42 percent after the electronic signature solutions firm forecast downbeat fourth-quarter revenue.
SOURCE: REUTERS
RELATED
Cana­da’s job mar­ket blows past es­ti­mates qua­dru­pling gains
Cana­da’s em­ploy­ment rose by 153,700 last month, Sta­tis­tics Cana­da re­port­ed Fri­day in Ot­tawa.
3 Dec 2021
OPEC+ mulls oil out­put as Omi­cron un­cer­tain­ty weighs on mar­kets
The con­ver­sa­tion around oil has changed in re­cent days as the US taps re­serves and fears over a new COVID vari­ant grow.
1 Dec 2021
Asian mar­kets sta­bilise amid un­cer­tain­ties over Omi­cron vari­ant
WHO has stressed lit­tle is known about vari­ant, with doc­tor be­hind dis­cov­ery re­port­ing “ex­treme­ly mild” symp­toms.
29 Nov 2021
Cryp­to come­back: Bit­coin bounces back af­ter bru­tal sell­off
Black Fri­day came to cryp­tocur­ren­cies last week when Bit­coin post­ed its rough­est day in two months.
29 Nov 2021
MORE FROM ECONOMY
Oil giants Total, Chevron exit Myanmar due to human rights abuses
Oil industry board members summoned over climate ‘disinformation’
UN labour chief calls on Asia to beef up social safety nets
Russia-Ukraine crisis: Can US sanctions sway Putin’s thinking?
MOST READ
Russia, US voice hope for diplomacy over Ukraine
World War II aircraft that crashed in India found after 77 years
Baby among four found dead along US-Canada border
What next for Iran and Russia ties after Raisi-Putin meeting?
Follow Al Jazeera English:
© 2022 Al Jazeera Media Network
You rely on Al Jazeera for truth and transparency
We understand that your online privacy is very important and consenting to our collection of some personal information takes great trust. We ask for this consent because it allows Al Jazeera to provide an experience that truly gives a voice to the voiceless. You have the option to decline the cookies we automatically place on your browser but allowing Al Jazeera and our trusted partners to use cookies or similar technologies helps us improve our content and offerings to you. You can change your privacy preferences at any time by selecting ‘Cookie preferences’ at the bottom of your screen.To learn more, please view our Cookie Policy.