S&P 500, Dow slip after mixed jobs data
By Bansari Mayur Kamdar and Johann M Cherian
(Reuters) — The S&P 500 and the Dow slipped on Friday after latest data signaled resilience in the labor market in the face of the Federal Reserve's aggressive monetary tightening.
The data showed that while U.S. job growth slowed more than expected in June after surging in the previous month, labor market conditions remained tight, with the unemployment rate retreating from a seven-month high and strong wage gains continuing.
«Today's numbers confirm the job market is still strong… and this report gives the green light to the Fed to raise rates,» said Peter Cardillo, chief market economist at Spartan Capital Securities.
«As far as the markets are concerned, the key is the Fed threat, and as you can see, we're pulling back in futures.»
Traders stuck to bets the Fed will raise its benchmark interest rate this month to a 5.25%-5.5% range, but were skeptical of further hikes beyond that.
Traders now see about a 34% chance of a further rate hike in November, down from nearly even odds before the report, according to CME's Fedwatch tool.
Five out of the 11 major S&P 500 sectors declined in early trading on Thursday.
Wall Street's main indexes ended sharply lower in a broad selloff, with the benchmark S&P 500 posting its biggest daily percentage drop in six weeks.
At 09:36 a.m. ET, the Dow Jones Industrial Average was down 82.28 points, or 0.24%, at 33,839.98, the S&P 500 was down 2.70 points, or 0.06%, at 4,408.89, and the Nasdaq Composite was up 29.21 points, or 0.21%, at 13,708.26.
All three major U.S. stock indexes were on track to end the week lower as escalating tensions between Beijing and Washington also weighed on market sentiment.
Among other early movers, the S&P 500
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