It was another down day for US. stocks as they sold off for a second straight day on Friday, weighed down by another rise in Treasury yields following the release of a solid jobs report that rounded off a week of robust data.
The jobs report which now being referenced as the "inflation report" widely because of its inflationary impact saw the U.S. economy add 134,000 jobs in September below the expected gain of 185,000. Yet, the U.S. unemployment rate fell to its lowest level since 1969 and job gains for August also received a upward revision to an addition of 270,000 jobs from 201,000. On the other hand, average hourly earnings (wages), grew by 2.8 percent last month on a year-over-year basis to match expectations.
The VIX hit a high of 17.36, its highest level since July 2 and US. Treasury yields pushed higher, with the US 10-year note touching 3.248 percent and the SPDR S&P Homebuilders ETF falling 0.8 percent. The utilities sector was the best performing sector rising 1.57 percent, whilst the technology and communication services sectors fell 1.27 percent and 1.04 percent, respectively. Intel shares fell 2.29 percent and Microsoft shares fell 0.59 percent.
Heavyweight stocks including members of the so-called FAANG group weighed on the major indexes – Facebook fell 0.96 percent, Amazon fell 1.03 percent, Apple fell 1.62 percent, Netflix fell 3.38 percent and Alphabet fell 0.79 percent. Tesla slumped 7.05 percent after CEO Elon Musk stirred nerves about the settlement of his securities fraud lawsuit by mocking the U.S. Securities and Exchange Commission on Twitter.
Chart of the Day: Tesla Inc (TSLA) Daily chart