US stocks drop after strong wage gains fan inflation worries

  • 📰 ksatnews
  • ⏱ Reading Time:
  • 40 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 19%
  • Publisher: 53%

Business News News

Business Business Latest News,Business Business Headlines

Wall Street is set to fall when trading opens Friday on renewed worries about inflation after a report showed wages for U.S. workers are accelerating faster than expected.

Friday’s report raised concerns that inflation may prove to be even stickier than feared, which could hinder the Federal Reserve from easing back on its big interest-rate hikes. The higher rates are meant to fight inflation by putting the brakes on the economy. The S&P 500 fell 1%. The yield on the two-year Treasury, which tends to track expectations for future Fed action, spiked to 4.36% from 4.19% just before the jobs report was released.

The government report showed that wages for workers rose 5.1% last month from a year earlier. That's an acceleration from October's 4.9% gain and easily topped economists' expectations for a slowdown. While that's good news for workers who are struggling to keep up with inflation, the Federal Reserve worries too-strong gains could cause high inflation to become further entrenched in the economy.

The stronger-than-expected jobs and wage data sent Treasury yields jumping on expectations the Fed may have be more aggressive about raising rates to get inflation under control. Signs of weakening trade, especially for export dependent economies in Asia, have deepened worries over slowing growth in China and its implications for the global economy.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 442. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Federal Reserve chair signals slowdown in rate hikes, stocks rally on Wall StreetWall Street closed out a solid November with a broad market rally Wednesday after the head of the Federal Reserve said the central bank could soon begin easing up on its aggressive interest rate increases aimed at taming inflation.
Source: DenverChannel - 🏆 239. / 63 Read more »

One of Wall Street's biggest bulls now sees stocks falling early next year as Fed 'overtightens'Once one of Wall Street's most vocal bulls, JP Morgan Chase & Co. equity analyst Marko Kolanovic released a much more downbeat outlook for stocks on...
Source: MarketWatch - 🏆 3. / 97 Read more »

Stock Market Today: Dow Gains Over 700 Points After Fed Chair Powell's SpeechStocks rallied, with the Dow rising more than 700 points to exit a bear market
Source: WSJ - 🏆 98. / 63 Read more »