Stocks fall after strong labor market data

US stocks sank Thursday morning after economic data showed private payrolls rose more than expected last month and weekly jobless claims fell to a three-month low, indicating continued malaise in the labor market despite higher interest rates.

S&P 500 Index (^ The Salafist Group for Preaching and Combat(down by 0.7%, while the Dow Jones Industrial Average (^ DJI) fell 250 points, or 0.8%. Nasdaq Technology Heavy Composite (^ ix) 0.9%.

ADP National Employment The report showed the growth of private employment by 235,000 jobs in December. Economists polled by Bloomberg called for an increase of 150,000.

Elsewhere in the economic data, unemployment insurance filings fell to 204,000, the lowest level since September, in the week ending Dec. 31 from the previous week’s downwardly revised reading of 223,000, said the Labor Department Thursday.

The reports were the latest to show strong demand for workers, even as the Federal Reserve is pressing aggressive monetary tightening to rein in inflation. ADP data and weekly jobless claims follow a separate track Wed measure That found that job openings fell less-than-expected last month and remained high. The Labor Department’s monthly nonfarm payrolls survey due Friday morning remains the most important read for Fed officials and investors trying to predict the next policy move.

Mike Lowengart, head of the global investment office for Morgan Stanley Global Portfolio Construction, said in a note. “These come on the heels of big-name companies announcing big job cuts, so there is no doubt that market pressures are affecting companies, but it remains to be seen when hiring will obviously slow.”

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amazon (AMZNChief Executive Andy Jassy said in a note late Wednesday that the company’s planned job cuts will now affect at least 18,000 employees, far more than previously indicated. Jassy’s note came after The Wall Street Journal reported news. Shares fell in early trading on Thursday.

The figure marks the largest workforce drop by a tech company in recent months as more names in the sector grow Layoffs to cut costs amid more difficult market conditions. Amazon lost approximately $834 billion in market value in 2022.

bed bath behind (BBBY) said in a Publication of the statement Thursday what it is facing bankruptcy While struggling with ongoing financial struggles. Shares fell the most thanks 22%

Shares of crypto-focused Silvergate Capital (SI) dig 38% in the post conquest The Wall Street Journal reported Bank Thursday Forced to sell assets At a significant loss to cover $8.1 billion in withdrawals after FTX went bankrupt. The drop comes after the stock rose 27% on Wednesday.

In other crypto stock moves, Coinbase (Currency) Shares fell 10% after Coin’s downgrade to market performance from Outperform, citing a “fairly steady decline” in trading volumes and risk from potential regulatory action after FTX’s collapse.

“There is a reduced view regarding stability in retail volumes in 2023 after further deterioration in December,” the company said. “Potential SEC Enforcement Action Rise After FTX With No Regulatory Certainty Until 2024.”

T-Mobile shares (TMUS) rose 1.8% after the mobile service provider reported subscriber growth in the most recent quarter, just above estimates. The company added 927,000 new phone customers in the period, compared to analyst calls of 921,000 customers.

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Johnson & Johnson (JNJ) Consumer Business Health introduced Kenvue on Wednesday To be listed as a separate company, marking the first notable filing of an initial public offering in the United States for the new year.

In other markets, oil prices have resumed their decline after falling nearly 10% over the past two days. West Texas Intermediate crude futures, the US benchmark, fell to $72 a barrel.

Monitors on the trading floor of the New York Stock Exchange (NYSE) show Federal Reserve Chairman Jerome Powell during a press conference, Dec. 14, 2022. REUTERS/Andrew Kelly

Scheduled speeches from Federal Reserve Chairs Rafael Bostic and James Bullard will be watched closely on Thursday.

Stocks closed higher on Wednesday after a volatile session affected by readings of the Federal Reserve’s December meeting minutes and economic data that showed… Higher job opportunities than expected and a A decline in manufacturing activity for the second month in a row.

Fed minutes showed on Wednesday Officials oppose ‘unwarranted’ accommodations For financial conditions, even as they welcome lower inflation, and the need to maintain a “restrained political stance” until the data becomes more promising.

“The December meeting minutes show that FOMC members remain focused on current inflation and inflation risks, with a fear of overdoing monetary policy that gets little attention,” Ian Shepherdson, chief economist at Pantheon, said in a note.

“Don’t expect them to ease their inflation line until it becomes clear that there is a serious shift in the data going,” he added.

Alexandra Semenova is a correspondent at Yahoo Finance. Follow her on Twitter @employee

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