Despite the earnings beats from Apple and Amazon, the US Stock Index reduced the data of weak jobs, immersed to investors.
Summary
- Dow Jones fell over 600 points on weak jobs data.
- Apple stock collapsed despite strong earnings.
- Fed May has to reduce interest rates to recruit.
Despite improving the Federal Reserve Cutting Interest Rates, weak job data barely hit the shares. On Friday, April 1, Dow Jones dropped 620 points or 1.42%, which declined by 1.75%in S&P 500. At the same time, Tech-Havi Nasdaq fell by 2.33%. The main driver of the fall was the July Labor Market Report, with only 73,000 new jobs shown, the expected 104,000.
Tech stocks were among the largest losers, and even Apple fell 2.5% despite a strong earning. Tech veteran reported an increase in its highest revenue in December 2021. Apple also said that it is planning to explain his investment in AI significantly.
Amazon’s earnings were also expected to expect expectations with an income of $ 1.68 compared to an estimate of $ 1.33. However, the company’s third quarter guidance was relatively modest. After investing the company’s multivion-dollar in AI, it decreased from investors’ expectations. As a result, its stock Amang fell 8%, the biggest loser.
Fed May has to cut mice on weak jobs data on May
While tech stocks are a beating, there may be a silver layer. In particular, the weak labor market may force the Federal Reserve to cut interest rates. CME Fedwatch Futures Markets are now pricing at 83% probability of rate cuts in September, a day before 38%
Fed has a dual mandate to maintain low inflation and high employment. So far, the central bank has resigned from the presses up to low rates from President Donald Trump’s White House, despite the partition between FOMC MBers.