Stocks fell as recession expectations resurfaced on Wall Street, and investors eyed key inflation statistics later this week.
- The Dow Jones Industrial Average was down 112 points, or 0.32%
- S&P 500 fell 0.72%
- The Nasdaq Composite fell 1%
Tech stocks were lower, with Apple shares falling 1.92% and Alphabet 1.73%. Tesla shares fell 3.62% after the company said it would cut prices on some electric cars again.
As investors take note of the key signs of a weak job market, markets are coming off a difficult week. Friday’s March jobs survey showed a stable economy and inflation, sending stock futures and Treasury yields higher.
Non-farm payrolls advanced 237,000 in the month. The unemployment rate fell again to 3.5%, against expectations that it would not exceed 3.62% the previous month.
According to the investment director of Glenmede Private Wealth, the report is consistent with forecasts of a slow recession in the United States, which does not indicate a quick resolution of inflation problems.
Figures for another quarter of rate hikes in May should be higher as the data does not justify the Fed holding back.
Investors are expecting a busy week with economic analysis, including the latest Consumer Price Index statistics to be released on Wednesday.
Other movements in the markets
Micron Technology shares rose 6% after Samsung Electronics announced a cut in memory chip production. Many Wall Street economists say the move will provide the impetus to speed up the recovery of the memory chip industry.
- Pioneer Natural Resources shares advanced 7%.
- Exxon shares fell 0.6%.
- Tesla’s electric car shares fell nearly 2%. Tesla has said it plans to cut car prices again.
- First Republic shares fell 3%.
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