Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Stocks, yields slide after U.S. jobs report as Omicron looms

Stock MarketsDec 03, 2021 22:37
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: Passersby wearing protective face masks walk past an electronic board displaying world stock indexes, amid the coronavirus disease (COVID-19) pandemic, in Tokyo, Japan November 1, 2021. REUTERS/Issei Kato 2/2

By Herbert Lash and Lewis Krauskopf

NEW YORK (Reuters) -Global equities and benchmark U.S. bond yields tumbled on Friday in volatile trade after data showed U.S. job growth slowed considerably in November and the Omicron variant of the coronavirus kept investors on edge.

Nonfarm payrolls increased by 210,000 jobs, the fewest since last December, but the unemployment rate plunged to a 21-month low of 4.2% and 594,000 people entered the labor force, the most in 13 months, indicating a rapidly tightening labor market.

Despite weak jobs growth, solid details in the Labor Department report suggested Federal Reserve plans to accelerate tapering of its bond purchases and expectations for multiple rate hikes next year remained intact.

The yield on 10-year U.S. Treasury notes fell 9.8 basis points to 1.351% and the tech-heavy Nasdaq Composite stock index slid almost 3% at one point as investors anticipated slower economic growth next year.

"The market is saying the Fed is going to make a serious policy error by raising rates too quickly," said Joe LaVorgna, chief economist for the Americas at Natixis. "Everything is working toward a much weaker growth backdrop; that is what the market senses, and the virus is occurring in the backdrop."

The Treasury yield curve measuring the gap between yields on two- and 10-year Treasury notes, seen as an indicator of economic expectations, narrowed to 77.0 basis points, down from almost 130 points in early October.

Recent global economic growth projections from the International Monetary Fund are likely be downgraded due to the emergence of the Omicron variant, said IMF Managing Director Kristalina Georgieva.

Omicron has gained a foothold in many countries worldwide and many governments have restricted travel rules to curb the variant.

"The top issue is still this whole Omicron variant. There are enormous amounts of uncertainty there," said Randy Frederick, vice president of trading and derivatives for Charles Schwab (NYSE:SCHW) in Austin, Texas.

Oil prices fell and gold prices rose almost 1% as the plunge in U.S. Treasury yields boosted the safe-haven metal's appeal.

MSCI's all-country world index fell 0.81% and the broad STOXX Europe 600 index closed down 0.6%.

Stocks on Wall Street pared heavy, earlier losses. The Dow Jones Industrial Average closed down 0.17%, the S&P 500 fell 0.84% and the Nasdaq Composite lost 1.92%.

The safe-haven Japanese yen and Swiss franc gained as market sentiment soured.

The dollar index, which tracks the greenback versus a basket of six currencies, rose 0.07% to 96.161.

The euro gained 0.06% to $1.1306, while the yen fell 0.36% to $112.7400.

Crude prices ended little changed after erasing gains of more than $2 a barrel on growing worries that rising coronavirus cases could reduce global oil demand.

Crude prices edged higher after producer group OPEC+ said it could review its policy to hike output at short notice if a rising number of pandemic lockdowns chokes off demand.

Brent futures rose 21 cents to settle at $69.88 a barrel, while U.S. West Texas Intermediate (WTI) crude ended 24 cents lower at $66.26 a barrel.

U.S. gold futures settled 1.2% higher at $1,783.90 an ounce.

Bitcoin fell 5.00% at $53,720.0400.

Stocks, yields slide after U.S. jobs report as Omicron looms
 

Related Articles

Nelson Peltz’s Trian builds stake in Unilever -FT
Nelson Peltz’s Trian builds stake in Unilever -FT By Reuters - Jan 23, 2022

(Reuters) -Trian Partners, Nelson Peltz’s activist hedge fund, has built a stake in Unilever (LON:ULVR), ratcheting up the pressure on the consumer goods maker, the Financial...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Len Smith
Len Smith Dec 03, 2021 19:21
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It’s because of the US threat to delist Chinese companies.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email