Stocks slump on fears about rates, recession after jobs data – PBS NewsHour

by | Oct 7, 2022 | Jobs

NEW YORK (AP) — Good news on the economy remains bad news for Wall Street, and stocks are falling Friday on worries a still-strong U.S jobs market may actually make a recession more likely.
The S&P 500 was 2.1% lower in midday trading after the government said employers hired more workers last month than economists expected. Wall Street is worried the Federal Reserve could see that as proof the economy hasn’t slowed enough yet to get inflation under control. That could clear the way for the Fed to continue hiking interest rates aggressively, something that risks causing a recession if done too severely.
“The employment situation is still good and that might be a little frustrating to the Fed,” said Brian Jacobsen, senior investment strategist at Allspring Global Investments. “The Fed thinks we need more people unemployed in order to make sure inflation comes down and stays down.”
The Dow Jones Industrial Average was down 468 points, or 1.6%, at 29,458, as of 11:20 a.m. Eastern time, and the Nasdaq composite was 2.9% lower. The drops mark a return to form for stocks, which have tumbled over 20% from records this year on worries about inflation, interest rates …

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