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Stocks - Wall Street Falls on Lowered Fed Cut Expectations 

Published 08/07/2019, 14:31
Updated 08/07/2019, 14:53
© Reuters.
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Investing.com – Wall Street tumbled on Monday after an uptick in U.S. job creation last month lowered expectations that the Federal Reserve will aggressively ease monetary policy.

The S&P 500 was down 16 points or 0.6% by 9:41 AM ET (13:41 GMT). The Dow lost 165 points or 0.6% and the Nasdaq composite slipped 76 points or 0.9%.

The U.S. economy added 224,000 jobs in June, a strong rebound from May’s increase of 72,000. The numbers dented hopes that the Fed will ease monetary policy aggressively due to trade war concerns. Investors still expect a rate cut of 25 basis points at the Fed’s July 30-31 meeting.

Technology shares were lower, with Apple (NASDAQ:AAPL) slumping 1.8% after an analyst at Rosenblatt Securities downgraded the company to sell from neutral due to concerns over iPhone sales, CNBC reported.

Boeing (NYSE:BA) stumbled 1% after news that Saudi Arabian low-cost carrier Flyadeal cancelled a provisional order for 30 737 Max jets, while Deutsche Bank (DE:DBKGn) fell 6.4% after it announced plans to cut 18,000 jobs worldwide.

Elsewhere, Symantec (NASDAQ:SYMC) gained 3.8% after Bloomberg reported that Broadcom (NASDAQ:AVGO) has secured financing for a takeover bid that could be as high as $22 billion, while Beyond Meat rose 3% and AT&T (NYSE:T) inched up 0.1%.

In commodities, crude oil gained 0.6% to $57.88 a barrel. Gold futures rose 0.3% to $1,403.65 a troy ounce, while the U.S. dollar index, which measures the greenback against a basket of six major currencies, was up 0.1% to 96.945.

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