Wall Street opened down on Friday after the announcement that the u.s. economy has created more jobs than expected, reducing to nothingness the hope that the federal Reserve would drop its rates aggressively at the end of the month.
The S&P 500 was down 19 points, or 0.7%, at 16: 00. The Dow has lost 152 points or 0.6% and the Nasdaq composite lost 55 points, or 0.7%.
“It is still more likely than not that the Fed will lower its rate, but the chances have decreased somewhat,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
“The reduction of 50 basis points should be completely abandoned at this stage. “
Non-agricultural employment increased by 224,000 in June, which is significantly above the consensus forecast of 160,000, and a net rebound after the downward revision of 72,000 in may.
The markets expect that the central bank may ease its monetary policy this year because of concerns that the damage caused by the trade war between the United States and China.
Bank stocks rose with the prospect of a sustainable rise in interest rates, with Bank of America (NYSE: BAC), up by 1.2%, JP Morgan increase of 0.6%, and Goldman Sachs (NYSE: GS ) gained 1%.
The semiconductor companies have experienced difficulties after the Korean giant Samsung (KS: 005930) has said, expect a dramatic decline in profits in the second quarter. Intel (NASDAQ: INTC) fell by 2.0%, while Qualcomm (NASDAQ: QCOM) fell 1.4% and Nvidia (NASDAQ: NVDA) has lost 1.9 per cent.
At the same time, Amazon.com (NASDAQ: AMZN) has lost 0.6%, after the uk competition authority and markets has asked the giant of e-commerce to suspend its integration with the meal delivery service Deliveroo, so it must decide to open or not an investigation into a possible contravention of the competition.
In commodities, crude gained 57%, to $ 57,62 per barrel. The future gold declined 2.1% to 1 391,25$ a troy ounce, while the dollar index, which measures the greenback against a basket of six major currencies, jumped 0.6% to 96,930, its highest level in more than three weeks.