by Noel Randewich and Devik Jain
(Reuters) – The New York Stock Exchange ended in disarray on Friday after strong U.S. jobs data revived fears of a quick tightening of monetary policy by the U.S. Federal Reserve (Fed).
The Dow Jones Industrial Average gained 0.23%, or 76.65 points, to 32,803.47 points.
The broader S&P-500 fell 6.75 points, or -0.16%, to 4,145.19 points.
The Nasdaq Composite fell for its part by 63.03 points (-0.50%) to 12,657.56 points.
The U.S. economy added far more jobs than expected in July and the unemployment rate returned to its pre-coronavirus pandemic level of 3.5%, the Labor Department’s monthly report showed on Friday.
The report paints a picture of a relatively strong economy despite two straight quarters of gross domestic product contraction, raising fears among investors that the Fed may raise rates for a third time at its September meeting.
“It’s all about the Fed. Such a report puts pressure on the Fed to tighten rates longer,” said Adam Sarhan, managing director of 50 Park Investments. “The market fears the Fed is going too far. If it tightens (monetary policy) too drastically and for too long, it will cause a severe recession.”
All eyes are now on the inflation figures expected next week.
In values, Tesla weighed heavily on the Nasdaq, as did Meta, the parent company of Facebook and Amazon.
Lyft advanced after reporting record quarterly profit and took 4.4% and said it forecast adjusted operating profit of $1 billion for 2024.
(With contributions from Aniruddha Ghosh and Medha Singh; French version Camille Raynaud)
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