The three main indexes of the US stock market fell this Friday, extending a weekly decline caused by the biggest increase in the rates of the Federal Reserve (Fed) in 20 years. investors in wall street also assimilated positive number of the nonfarm payroll.
The index S&P 500, which groups the shares of the 500 strongest issuers, fell 0.57% and ended at 4,123.34 points. The dow jones, made up of 30 industrial giants, lost 0.30% and closed at 32,899.37 units. The nasdaqwith a high technological component, lost 1.40% to 12,144.66 units.
The Fed increased 50 basis points to interest rates in the United States on Wednesday, the largest rate hike since 2000. This Friday, the Labor Department announced that non-farm payrolls grew 428,000 in April, higher than a expected number of 391,000 jobs.
The employment numbers underscored the strong fundamentals of the US economy despite a contraction in Gross Domestic Product (GDP) in the first quarter. This strength would allow the central bank to raise rates further if price pressure remains strong.
Nine of the 11 major S&P 500 subsectors closed with losses, with energy companies the best performer. Oil prices resumed gains and reinforced pressures on inflation, amid the war between Russia and Ukraine fueling fears.
On the other hand, shares of large mega-cap companies extended losses, with a few exceptions such as Apple Inc, which gained a moderate 0.47 percent. Growth company stocks tend to fall if rates rise because they are valued at future earnings.
All three major indices extended their already long weekly losing streaks, with the Nasdaq and S&P 500 in the red for the fifth consecutive week (down 1.54% and 0.21%) and the Dow Jones for the sixth week (0.23%).