S&P 500 posts worst week in nearly a month as rates pop

Stocks fell on Friday after the release of mixed employment data jolted interest rates higher.

S&P 500 closed 0.6 percent lower at 2,885.57 as the tech sector underperformed. The broad index also fell nearly 1 percent this week, posting its worst weekly performance since the week of Sept. 7.

The Dow Jones Industrial Average dropped 180.43 points to 26,447.05 as Intel and Caterpillar lagged. It also notched its second straight weekly decline.

The Nasdaq Composite pulled back 1.2 percent to 7,788.45 as Amazon, Apple, Netflix and Alphabet all traded lower. For the week, the tech-heavy index fell 3.2 percent, its biggest weekly drop since the week of March 23. It dropped 6.5 percent that week.

At its lows of the day, the Dow fell as much as 325.67 points. The S&P 500 broke below its 50-day moving average for the first time since July 5 before snapping back above the closely watched technical level. The Nasdaq fell as much as 2.1 percent on Friday.

The U.S. economy added 134,000 jobs in September, well below the expected gain of 185,000. However, the U.S. unemployment rate fell to its lowest level since 1969. Job gains for August also received a sharp upward revision to an addition of 270,000 jobs from 201,000. Wages, meanwhile, grew by 2.8 percent last month on a year-over-year basis to match expectations.

“The labor market is going to keep getting tighter and that will mean higher wages,” said Peter Cardillo, chief market economist at Spartan Capital Securities. “This is going to keep upward pressure on rates and continue to put downward pressure on stocks.”

Source: CNBC