Advertisement

US stocks fall as investors weigh how Friday's jobs data will impact the Fed's next rate decision

A big screen display of stock prices hangs behind traders working at the New York Stock Exchange NYSE.
A big screen display of stock prices hangs behind traders working at the New York Stock Exchange NYSE on May 9, 2022.Michael Nagle/Xinhua via Getty Images
  • US stocks fell Monday as investors reacted to the March jobs report showing cooling in the labor market.

  • Stock indexes finished the holiday-shortened week with losses.

  • Due this week is March inflation data and the first quarterly results from big banks after SVB's failure.

Stocks declined Monday as investors returned from a holiday break to react to the US jobs report for March and how that plays into the Federal Reserve's thinking about interest rates.

Key stock indexes were lower after last week's losses. The S&P 500 slipped 0.1% last week, marking the first loss in four weeks, and the Nasdaq Composite fell by 1.1%.

ADVERTISEMENT

Monday was the first full session for stock investors to react to the March jobs report released during the Good Friday holiday. The US economy added 236,000 nonfarm payrolls last month, falling short of the 239,000 median forecast and cooling from February's 326,000 reading. The unemployment rate fell to 3.5%, and the labor force participation rate rose.

"If last week's jobs data represents any indication, we could be in for a material recessionary environment, as high jobless claims, vastly fewer available positions, and a slew of corporate job cuts are set to weigh heavily on the US economy," Greg Bassuk, CEO of AXS Investments, told Insider in emailed comments.

Here's where US indexes stood at the 9:30 a.m. opening bell on Monday: 

Investors, by odds of nearly 70%, are expecting the Fed to raise interest rates by another 25 basis points, to a range of 5%-5.25% at its May 2-3 meeting, according to pricing in the Fed funds futures market. That would be the 10th consecutive rate increase.

Also due this week is the March consumer price index report and the first quarterly results from big banks after the collapses of Silicon Valley Bank and Signature Bank shook the industry.

Financial results are due on Friday from JPMorgan Chase, Citigroup, and Wells Fargo, which have seen surges in deposits while regional banks have seen big withdrawals.

Here's what else is happening today:

In commodities, bonds, and crypto:

Read the original article on Business Insider