Stocks cut some losses in afternoon trading after dropping on the back of labor data as investors looked to the upcoming Federal Reserve meeting.
The Dow Jones Industrial Average was down just 31 points, or 0.1%, after hitting a session low of greater than 350 points down. The S&P 500 and Nasdaq Composite each dipped 0.4%, mitigating earlier losses of 1.2% and 1.6% down, respectively. All three indexes are poised to see gains this week, with the Nasdaq on target so as to add just below 2%.
Stocks dipped after labor data released Friday morning showed payrolls increased 263,000 in November, an even bigger gain than the 200,000 increase expected by economists polled by Dow Jones. The unemployment rate held regular at 3.7%. Average hourly earnings also got here in above expectations, jumping 0.6% compared with the prior month and 5.1% against the identical month a 12 months ago.
However the market quelled a few of those losses in the following hours. Market observers attributed the move to investors being increasingly in a position to shake off concerning individual economic indicators following remarks on Wednesday from Fed Chair Jerome Powell that appeared to substantiate slowing rate hikes starting as early as December.
“Only one strong labor data point isn’t going to be enough after Powell’s speech,” said Anna Han, vp at Wells Fargo Securities. “He’s confirming that we’re seeing the trend that we’re having an impact on inflation, so I feel that form of soothes the market and takes pressure off.”
It was the ultimate monthly employment report before the Fed’s two-day meeting Dec. 13-14, through which the central bank is predicted to slow to a 50 basis point rate of interest hike from the 75 basis point hikes seen in recent months.
