SP500 Falls After Non-Farm Report as December Rate Hike Remains On Course
SP500 index tumbled on Friday after the September jobs data proved that the U.S economy is strong enough for a rate hike by the end of this year, even though the results were not as good as expected.
According the Labor Department, there were 156,000 jobs added in September, with unemployment rate rising to 5% from 4.9% as more Americans entered the labour market looking for work.
Commenting on the non-farm report, Cleveland Federal Reserve President Loretta Mester said that the economy is at full employment and therefore gradual rate hikes are needed.
With the same point of view as Cleveland Fed President Mester, Federal Reserve Vice Chairman Stanley Fischer said that the result was strong enough to reflect an economy that is moving ahead but not too fast to pose risks.
At the time of writing, 10 out of 11 sectors of the SP500 index were trading in the red. Industrials and Materials sectors led the decline, dropping 1.48% and 1.97%, respectively.
Sell Stop at 2147.00, Stop loss at 2152.00, Take profit at 2140.00