AP

US stocks falling after red-hot jobs report; Warner -15%

Aug 4, 2022, 11:12 AM | Updated: Aug 6, 2022, 2:43 pm

FILE - The New York Stock Exchange on Wednesday, June 29, 2022, in New York. Stocks are opening low...

FILE - The New York Stock Exchange on Wednesday, June 29, 2022, in New York. Stocks are opening lower on Wall Street Friday, Aug. 5, following much stronger than expected hiring data from the Labor Department.(AP Photo/Julia Nikhinson, File)

(AP Photo/Julia Nikhinson, File)


              FILE - The New York Stock Exchange on Wednesday, June 29, 2022, in New York. Stocks are opening lower on Wall Street Friday, Aug. 5,  following much stronger than expected hiring data from the Labor Department.(AP Photo/Julia Nikhinson, File)
            
              FILE - The New York Stock Exchange on Wednesday, June 29, 2022, in New York. Stocks are opening lower on Wall Street Friday, Aug. 5,  following much stronger than expected hiring data from the Labor Department.(AP Photo/Julia Nikhinson, File)
            
              FILE - The New York Stock Exchange on Wednesday, June 29, 2022, in New York. Stocks are opening lower on Wall Street Friday, Aug. 5,  following much stronger than expected hiring data from the Labor Department.(AP Photo/Julia Nikhinson, File)
            
              FILE - The New York Stock Exchange on Wednesday, June 29, 2022, in New York. Stocks are opening lower on Wall Street Friday, Aug. 5,  following much stronger than expected hiring data from the Labor Department.(AP Photo/Julia Nikhinson, File)
            
              FILE - The New York Stock Exchange on Wednesday, June 29, 2022, in New York. Stocks are opening lower on Wall Street Friday, Aug. 5,  following much stronger than expected hiring data from the Labor Department.(AP Photo/Julia Nikhinson, File)
            
              FILE - The New York Stock Exchange on Wednesday, June 29, 2022, in New York. Stocks are opening lower on Wall Street Friday, Aug. 5,  following much stronger than expected hiring data from the Labor Department.(AP Photo/Julia Nikhinson, File)
            
              A detail of the exterior of The New York Stock Exchange, on Wednesday, Aug. 3, 2022, in New York. Stocks are opening nearly flat on Wall Street Thursday, Aug. 4. New data from the Labor Department showed more Americans applied for jobless benefits last week as the number of unemployed continues to rise modestly.(AP Photo/Julia Nikhinson)
            
              A currency trader watches screens showing the foreign exchange rates at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, Aug. 5, 2022. Asian stock markets rose Friday ahead of U.S. job market data that might influence Federal Reserve decisions about further interest rate hikes. (AP Photo/Ahn Young-joon)
            
              A currency trader watches monitors in front of screens showing the Korea Composite Stock Price Index (KOSPI), left, and the exchange rate of South Korean won against the U.S. dollar at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, Aug. 5, 2022. Asian stock markets rose Friday ahead of U.S. job market data that might influence Federal Reserve decisions about further interest rate hikes. (AP Photo/Ahn Young-joon)
            
              Currency traders watch monitors at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, Aug. 5, 2022. Asian stock markets rose Friday ahead of U.S. job market data that might influence Federal Reserve decisions about further interest rate hikes. (AP Photo/Ahn Young-joon)
            
              A currency trader talks with her colleague at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea, Friday, Aug. 5, 2022. Asian stock markets rose Friday ahead of U.S. job market data that might influence Federal Reserve decisions about further interest rate hikes. (AP Photo/Ahn Young-joon)

NEW YORK (AP) — Stocks are opening lower on Wall Street Friday following much stronger than expected hiring data from the Labor Department. The S&P 500 is off 0.8% at the opening bell and the Nasdaq is down by more than a percent. The Dow Jones industrials are also falling. Labor Department figures show U.S. employers added 528,000 jobs last month, restoring all the jobs lost in the coronavirus recession, while unemployment fell to the lowest since the pandemic erupted in early 2020. The hiring boom suggests the Fed may continue aggressively fighting inflation. Warner Bros. Discovery shares are having their third worst day ever after reporting weak second quarter earnings.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story appears below.

Stocks in the U.S. fell in premarket trading after a hotter-than-expected report on hiring suggested the Federal Reserve will have to stay aggressive in its efforts to fight inflation.

Futures on the S&P 500 fell 1% after being slightly higher just before the Labor Department released its latest employment figures, which showed a gain of 528,000 jobs, compared with an expectation for a gain of 250,000 jobs.

The Dow Jones Industrial Average fell 0.7% and the Nasdaq dropped 1.3%. Bond yields jumped, with the yield on the 2-year Treasury rising to 3.2%. The 10-year treasury yield rose to 2.81%. Yields had been pulling back in expectations the Fed could ease up somewhat on the pace of rate hikes as the U.S. economy slowed, giving a boost to the stock market.

Markets in London, Paris and Frankfurt were lower while Shanghai and Tokyo advanced. Oil prices fell back.

The Fed has raised its benchmark rate twice by 0.75 percentage points this year, three times its usual margin and the biggest hikes since the early 1990s.

Investors worry rate hikes by the Fed and other central banks in Europe and Asia to tame inflation that is running at multi-decade highs might derail economic growth.

Fed officials have tried to calm fears the United States might tip into a recession by pointing to a strong job market as evidence the economy can tolerate higher borrowing costs.

In Asia, the Shanghai Composite Index advanced 1.2% to 3,227.03 and the Hang Seng in Hong Kong gained 0.1% to 20,201.94.

The Nikkei 225 in Tokyo gained 0.9% to 28,175.897 after June labor cash earnings rose 2.2% over a year ago, though forecasters warned that strength was unlikely to last. Much of the increase was due to half-yearly bonuses that are paid in June.

The Kospi in Seoul added 0.7% to 2,490.80 and Sydney’s S&P ASX 200 advanced 0.6% to 7,015.60.

India’s Sensex rose 0.1% to 58,381.11 after the Reserve Bank of India raised its benchmark interest rate by a half percentage point to 5.4%. Central bank Gov. Shaktikanta Das forecast 7.2% economic growth in the year through March and inflation of 6.7%.

New Zealand and Bangkok declined while Singapore rose.

Jakarta advanced 0.4% after Indonesia’s economy grew by a stronger-than-expected 5.4% over a year earlier in the latest quarter.

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