Stocks fell sharply on Friday to cap their eighth weekly loss out of the last nine, as a stronger than expected report on U.S. nonfarm payrolls suggested the labor market remains robust enough for the Federal Reserve to raise rates quickly.
The benchmark 10-year Treasury yield climbed above 2.9% after the report, leading to outsized losses among tech stocks. Sentiment also was hurt by a report that Tesla’s Elon Musk may be considering job cuts on worries over the economic outlook.
Musk’s misgivings followed comments earlier in the week from J.P. Morgan’s Jamie Dimon, who said he foresees an economic “hurricane” ahead from the war in Ukraine and the Fed’s tightening policies. All three of the major market indexes finished negative for the holiday-shortened week, with the S&P 500 shedding 1.2%, and the Dow Jones and Nasdaq each down by about 1%