On Friday, August 5, 2022, US stocks primarily declined. A strong jobs report weighed on tech and related stocks, causing the NASDAQ and S&P500 indexes to close below the unchanged line. However, the Dow index was able to hold gains thanks to a surge in banking and energy stocks, which helped the Dow index maintain its gain line.
The Dow Jones Industrial Average index decreased 76.65 points, or 0.23 percent, to 32,803.47 at the end of trading. To reach 4,145.19, the S&P500 index dropped 6.75 points or 0.16 percent. The Nasdaq Composite Index, which is heavily weighted toward technology, dropped by 63.03 points, or 0.5 percent, to 12,657.55. The Nasdaq and S&P 500 both saw weekly gains of 2.2% and 0.4%, respectively, while the Dow saw a weekly decline of 0.1%.
Investors responded negatively to the carefully watched July jobs report from the Labor Department, which revealed that employment in the U.S. increased by far more than anticipated by 528,000 jobs in July after increasing by an upwardly revised 398,000 jobs in June.
Because of the stronger-than-expected job creation, the unemployment rate unexpectedly decreased from 3.6 percent in June to 3.5 percent in July, a pre-pandemic low.
The jobs report signaled a pick-up in pay pressures that would probably keep inflation high, permitting the Federal Reserve to keep front-loading interest rate increases without sparking a recession.
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Stocks in the technology and allied industries plummeted as U.S. Treasury yields increased following the report. The shares of Amazon.com and Tesla Inc. fell 1.3 percent and 2.2 percent, respectively.
Crude oil for September delivery increased $0.47 to $89.01 a barrel after plummeting to its lowest levels since Russia’s invasion of Ukraine, which significantly boosted oil-related stocks.
Nevertheless, financials were driven higher by banking stocks, particularly JPMorgan Chase & Co., as rising rates often enhance lending margins.
Block Inc. experienced a 2.8 percent decline as a result of the digital payments company’s quarterly loss due to declining interest in cryptocurrencies.
INFOSYS increased by 0.79 percent to $20.31 among Indian ADR, Dr. Reddy’s Labs increased by 0.42 percent to $52.66, Azure Power Global increased by 0.5 percent to $11.54 among Indian ADR, WNS Holdings increased by 0.1 percent to $86.15, HDFC Bank increased by 0.61 percent to $62.81, and ICICI Bank decreased by 2 percent to $21.21 among Indian ADR. Tata Motors dropped 1.2 percent to $29.22 while Wipro dropped 0.36 percent to $5.48
