The Dow Jones industrial average fell 630.15 points, or 2.1%, to 29,296.79. The S&P 500 lost 2.8% to 3,639.66. The Nasdaq Composite fell 3.8% to 10,652.41, less than 1% above a year low. Friday’s losses capped gains for what started as a big comeback week for stocks. The major averages ended the week still higher, but gave back most of the gains from the rally that started it. The Dow rose 2% for the week, while the S&P rose 1.5%. The Nasdaq rose 0.7%. The US economy added 263,000 jobs in September, slightly below the Dow Jones estimate of 275,000, the government said on Friday. But the jobless rate rose to 3.5%, from 3.7% the previous month, in a sign that the jobs picture continues to strengthen even as the Federal Reserve tries to slow the economy with rate hikes to curb inflation. “While the data was about as expected, the drop in the unemployment rate seems to be what the markets are obsessing over because of what it means for the Fed,” said Bleakley Financial chief investment officer Peter Boockvar. “When combined with the low level of initial jobless claims, the pace of layoffs remains muted and that naturally makes the Fed nervous to continue its aggressive rate hikes.” The drop in the unemployment rate sparked a jump in rates, in turn weighing on stocks. The yield on the 2-year note rose 6 basis points to 4.316%. (1 basis unit equals 0.01%). Shares of Advanced Micro Devices fell after the chipmaker warned that third-quarter revenue would be lower than expected. Shares in Levi Strauss fell after a cut in line with company guidance. “The conclusion that many people have come to is that not only is the Fed not going to help the markets, but in its persistent pursuit of price stability it will continue until something breaks in the capital markets,” said Christopher Harvey, equity analyst at Wells Fargo. . Securities. “What appears to be their increasingly singular focus — price stability — will likely help catalyze the dislocation.”
