The major US stock indices are closing mixed as investors digest the stronger-than-expected US jobs report. The Dow, S&P 500 and Nasdaq closed modestly lower, while the technology-heavy Nasdaq 100 and small-cap Russell 2000 moved modestly higher.
The stronger labor data presents both positives and negatives for stocks. Continued job growth supports the economy and corporate earnings, but it may also keep inflation and interest rates elevated. That push and pull is contributing to today’s mixed price action. The chance of a September rate hike moved up to 57% from just above 50% before the jobs data.
Pres. Trump said that if the Fed does not cut rates he would stop trading with countries running surplus with the US.
The snapshot of the closing levels shows:
- Dow industrial average: −272.05 points, or −0.51%, at 53,419.33
- S&P 500: −29.09 points, or −0.30%, at 7,718.61
- Nasdaq Composite: −77.07 points, or −0.29%, at 26,506.99
- Russell 2000: +7.38 points, or +0.25%, at 2,975.65
- Nasdaq 100: +61.84 points, or +0.21%, at 29,544.16
The split between the Nasdaq Composite and Nasdaq 100 suggests strength is concentrated in the largest technology companies, while the broader Nasdaq market remains softer. Meanwhile, the Russell’s gain shows that small-cap stocks are finding some support despite the prospect of interest rates remaining higher for longer.
This article was written by Greg Michalowski at investinglive.com.