US Stocks End Lower Wednesday Amid Stronger-Than-Expected Growth in Private Payrolls

Last Updated: Wednesday, October 5, 2022 4:24 PM | MT Newswires

US benchmark indices ended lower on Wednesday despite briefly touching positive territory less than an hour before the close, with government bonds yields rebounding amid a stronger-than-expected growth in private payrolls and a surprise decline in the ISM's services reading for August.

The Dow Jones Industrial Average fell 0.1% to 30,273.87, the S&P 500 was down 0.2% to 3,783.28 and the Nasdaq Composite was 0.3% lower at 11,148.64, with all three managing to trim losses earlier in the session.

Utilities and real estate were the steepest decliners, with energy the top gainer among the sectors.

The 10-year yield surged 14.2 basis points to 3.76%, and the two-year rate jumped 5.1 basis points to 4.15%.

In economic news, private payrolls hit 208,000 in September compared with an upwardly revised 185,000 in August. The market forecast was for an increase of 200,000 jobs, according to data compiled by Trading Economics. The ISM's services index fell back to 56.7 in September from 56.9 in August, reversing the gain from July. There were declines in the readings for new orders, production, and prices, though all remained above the breakeven point, while the employment reading nudged higher.

The dollar index jumped 1% to 111.18.

Federal Reserve Bank of San Francisco President Mary Daly told Bloomberg the Fed is determined to raise interest rates further to curb inflation. Daly also said the market anticipation of interest-rate cuts next year is misplaced.

West Texas Intermediate futures surged 1.5% to $87.98 a barrel. The Organization of the Petroleum Exporting Countries and non-OPEC producers led by Russia said it would cut crude oil production by two million barrels per day, the steepest cut since the spread of the COVID-19 pandemic.

In company news, Lumen Technologies (LUMN) shares sank over 9%, the worst performer on the S&P 500, after analysts at Wells Fargo downgraded the communications company's stock rating to equalweight from overweight with an $8 price target.

Schlumberger (SLB) disclosed a partnership with Gradiant, a developer of cleantech water projects, to deliver sustainable production of battery-grade lithium compounds. Shares jumped 6.3%, the second biggest gainer on the S&P 500.

Gold was down 0.2% to $1,726.50 per troy ounce, with silver 1.9% lower at $20.71 per ounce.

Share this article:

Related Companies

You May Also Like