Stocks fall, indices post weekly losses as worries about Russia and Ukraine outweigh strong jobs data

Stocks fell on Friday as investors look to a Much stronger than expected report on labor market recovery He continued to monitor the global economic repercussions of the Russian war in Ukraine.

The S&P 500 fell to extend declines from Thursday and posted a weekly loss of about 1.3%. The Dow Jones Industrial Average posted its fourth consecutive weekly loss. Treasury yields fell further as traders piled into safe havens including bonds and gold, and the benchmark 10-year yield fell below 1.8%. The risk-off tone came on Friday amid reports that the United States was considering a ban on imports of Russian crude oil, in a move that would punish Russia for its invasion of Ukraine.

A fresh batch of economic data Friday morning assured investors that the US economy has recovered enough to allow monetary policy makers to ease crisis-era support. The Labor Department’s February jobs report showed that 678,000 jobs returned more than expected last month, with employment growth accelerating after Omicron-related issues eased in the US. The unemployment rate improved more-than-expected to 3.8%, the lowest level since February. 2020 before the pandemic. this is Reverse much better-than-expected private payroll data released by the ADP earlier this week.

Indeed, Federal Reserve officials have declared victory in fulfilling the economy’s hiring mandate. Testifying before Congress this week, Federal Reserve Chair Jerome Powell said most members of the Federal Open Market Committee (FOMC) would agree that the US labor market is now at a level consistent with maximum employment.

Even before the February jobs report, Powell said he would support a 25 basis point rate hike at the Fed’s March meeting, quelling speculation that the central bank might go ahead with a more aggressive 50 basis point hike to jump-start its efforts to cut inflation. But the ongoing rate increases have left open the question of how aggressively the Fed will tighten monetary policy over the rest of the year.

Inflation fears have only exacerbated with crude oil prices hovering at multi-year highs, with both WTI and Brent crude prices up more than 40% for the year to date and settling at over $100 a barrel. But for monetary policy makers, these concerns had to be weighed Against the uncertainty now generated by the crisis in Ukraine.

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“Recent action over the past week, given the combination of the situation between Russia and Ukraine as well as persistent footprints of inflation, has lowered expectations within the market to approximately five highs, and possibly lower,” Matt Kichlansky, GenTrust Wealth Management owner, said. Yahoo Finance Live said. “So I think the Fed needs to signal in that sense that they think that’s where they’re really going to be.”

4:01 p.m. ET: Stocks closed session lows

Here are the major moves in the markets as of 4:01 PM ET:

2:03pm ET: White House considering ban on Russian oil imports: Bloomberg

Bloomberg reported on Friday that the White House is considering efforts to ban imports of Russian crude oil into the United States, in a move to further punish Moscow for its war in Ukraine.

Such a move has received support from a group of members of Congress from both parties, Republicans and Democrats so far. House Speaker Nancy Pelosi said Thursday she would support such a move, as did Senator Lisa Murkowski, a Republican from Alaska, and Democratic Senator Mark Warner of Virginia, among others.

According to data from the Energy Information Administration, Russian crude oil accounted for about 3% of total shipments that arrived in the United States in 2021.

1:06pm ET: Apple says it will continue to increase annual profits

an Apple (AAPLCEO Tim Cook said during the company’s annual investor day on Friday that the iPhone maker will continue to provide annual dividend increases to shareholders. Apple’s board of directors recently announced a cash dividend of 22 cents per share, Payable on February 10 to shareholders as of February 7. stock. ofApple shares fell 1% in afternoon trading

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Apple’s shareholder meeting also included an update on the company’s plans to return to the office. Apple has set a deadline for returning employees to April 11.

9:57AM ET: Disney has announced an ad-supported release of Disney+ later this year

Disney (dis) said Friday that it will offer an ad-supported version of Disney+ streaming to consumers later this year, creating a cheaper option for consumers as the company continues to expand.

The new tier will be available in the United States from late 2022, and internationally starting in 2023.

“Expanding access to Disney+ to a wider audience at a lower price point is a win-win for all – our consumers, advertisers and storytellers,” Karim Daniel, CEO of Disney Media and Entertainment Distribution, said in a statement. “More consumers will be able to access our amazing content. Advertisers will be able to reach a wider audience, and our storytellers will be able to share their amazing work with more fans and families.”

Disney added that it considers the new ad-supported offering as a “building block” as the company aims to attract up to 260 million Disney+ subscribers by fiscal year 2024. Disney has reported total Disney+ subscribers of 129.8 million as of the first quarter of Fiscal year. .

Disney shares tumbled nearly 3% on Friday morning, pulling back the performance of the S&P 500 and the broader Dow.

9:35AM ET: Stocks fall after jobs report

Here is where the shares were traded right after the market opened:

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8:45AM ET: Stock futures remained lower but pared some declines after the jobs report

US stock futures pared losses from the worst points of the evening session but remained lower after the February jobs report. Contracts in the Dow Jones fell more than 200 points after an earlier drop of more than 300 points, and contracts in both the S&P 500 and Nasdaq fell about 0.5%.

The Jobs report for the month of February from the Ministry of Labor It showed that 678,000 jobs returned better than expected last month versus 423,000 expected, according to Bloomberg Consensus data. The unemployment rate also improved to 3.8%, even as the labor force participation rate unexpectedly rose to 62.3%.

Average hourly wages were somewhat less hot than expected, easing some of the concerns for the time being about the wage and price spiral. Earnings rose 5.1% in February from a year ago, down from a 5.5% rate in January. Wage growth stabilized on a monthly basis.

7:22 a.m. ET: Stocks head to the lower opening

Here’s where the stock traded on Friday morning:

6:13PM ET Thursday: Stock futures up

Here are the main moves in the markets on Thursday evening:

  • S&P 500 futures contracts (ES = F.): +6.5 points (+0.15%) to 4,365.75

  • Dow futures contractsYM = F.): +54 points (+0.16%) to 33792.00

  • Nasdaq futures contractsNQ = F.): +31.25 points (+0.22%) to 14,061.75

A trader works at the New York Stock Exchange in New York, US, February 28, 2022. US stocks closed mixed on Monday as investors looked for updates regarding the conflict between Russia and Ukraine. The Dow Jones Industrial Average fell 166.15 points, or 0.49 percent, to 33,892.60. The Standard & Poor’s 500 Index fell 10.71 points, or 0.24 percent, to 4,373.94 points. The Nasdaq Composite Index rose 56.78 points, or 0.41 percent, to 13,751.40 points. (Ali Joseph / NYSE / Bulletin via Xinhua)

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter

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