US: Stocks finish mixed after strong private jobs data

STOCKS on Wall Street ended the day mixed on Thursday, as better-than-expected private sector jobs data fueled concerns that the financial markets may have been too enthusiastic about interest rate cuts.

The US Federal Reserve recently signaled it expects as many as three rate cuts this year, as inflation continues to decline towards policymakers’ long-run two per cent target.

But markets indicated that traders expected as many as six reductions over the same period, something that seems increasingly unlikely in the face of continued strong economic data.

The Dow Jones Industrial Average finished the day flat at 37,440.34.

The broad-based S&P 500 fell 0.3 per cent to 4,688.68, while the tech-rich Nasdaq Composite Index extended its recent slump to end the day down 0.6 per cent at 14,510.30.

To get the rate cuts that markets have already priced in, the data have to start showing much weaker numbers, said Karl Haeling of LBBW.

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US: S&P 500, Nasdaq open lower after robust jobs data

But he added that the market was “holding up reasonably well if you really take away the tech stocks.”

Among individual companies, Apple’s recent woes continued, with the tech giant closing down 1.3 per cent after its stock was downgraded by analysts.

Energy company APA saw its share price fall more than seven percent after announcing a deal to acquire Callon Petroleum. AFP