Walmart and Costco lead selloff of consumer-staple stocks after jobs report ignites rate hike worries

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S&P 500 Consumer Staples Sector Index on track for worst one-day selloff of 2023

Consumer staples companies fell across the board on Friday, after a stronger-than-expected September jobs report raised concerns it may lead the Federal Reserve to again hike interest rates.

“At any rate, the robust employment data for September paves a difficult road ahead for the Fed as they navigate the economic data and fine tune monetary policy for the months ahead,” said Charlie Ripley, senior investment strategist for Allianz Investment Management.The S&P 500 Consumer Staples Sector Index was last down 2.7% to put it on track for its worst one-day performance of the year. The index fell 2.65% on Jan. 18.

Among individual components, Walmart Inc. WMT, -3.02% was down 4.2% and has fallen for three of the past four sessions. Costco Wholesale Corp. COST, -2.93% was down 4.3% and was on pace for its largest percent decrease since December 1, 2022, according to Dow Jones Market Data. Read also: Dollar General gets its latest bearish view as HSBC says its least favorite of 7 retailers

 

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