alt Hacker NewsI'm quite relieved as the S&P should be stable and slow. But with that caveat said, is this why the S&P 500 dropped off a cliff on Friday? If so, why?
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The general consensus is stocks nosedived after the strong jobs report, because strong labor market means its more likely Fed will hike interest rates to curb inflation.
Quite the opposite.
It dropped because tech dropped and it still has a lot of tech.
This is why QQQ was down far more than SPY, as QQQ is more tech heavy and will be adding these companies.
Impossible to know for sure. But I would speculate a lot of investors are "bullish" on these three companies and would rather invest more on them.
No. All index dropped on Friday.
Jobs numbers came way stronger than expected, and previous two months also got revised up.
Strong job numbers + increasing inflation = overheated economy = goodbye interest rate cuts. In fact, there's a significant chance that rates will go up this year. Perhaps even more than once.
That means cost of borrowing will increase, which is bad for business growth.
The story being reported is that the unexpectedly strong US jobs report will push the Fed towards a rate hike, which often is correlated with a drop in stock prices.
https://www.nbcnews.com/business/markets/tech-stocks-sink-rc...