Dow Logs Daily, Weekly Losses as Wall Street Eyes Rate Hikes

Investors took the strong jobs report as a green light for interest rate hikes

Digital Content Manager
Jun 3, 2022 at 4:28 PM
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A strong jobs report for May did more harm than good on Friday, with stocks settling deep in the red after Wall Street interpreted the data as a green light for the U.S. Federal Reserve to move forward with interest rate hikes. The Dow fell 348 points, and both the S&P 500 and Nasdaq settled lower as well, as a surging 10-year Treasury yield dinged the tech sector. All three major benchmarks also logged weekly losses, while the Cboe Volatility Index (VIX) registered a second-straight losing week, despite finishing higher for the day.

Continue reading for more on today's market, including:

  • The retail stock drawing mixed analyst reactions.
  • Okta stock popped on strong quarterly results.
  • Plus, tech ETF bottom in sight; 8 weed stocks to watch right now; and buyout bids boost KSS.

The Dow Jones Average (DJI - 32,899.70) dropped 348.6 points, or 1.1% for the day, and 0.9% for the week. Caterpillar (CAT) rose 1.3%, leading the gainers. Apple (AAPL), meanwhile, paced the laggards with a 3.9% drop.

The S&P 500 Index (SPX - 4,108.54) lost 68.3 points, or 1.6% for the day, and 1.2% for the week. Meanwhile, the Nasdaq Composite (IXIC - 12,012.73) fell 304.2 points, or 2.5% for the session, and 1% this week.

Lastly, the Cboe Market Volatility Index (VIX - 24.79) added 0.07 point, or 0.3% for the day, but lost 3.5% for the week.

Closing Index Summary June 3

NYSE and Nasdaq Stats June 3

5 Things to Know Today

  1. Cleveland Fed President Loretta Mester said there is not enough evidence inflation has peaked, and that many rate hikes will be need in the coming months. (CNBC)
  2. Tesla (TSLA) CEO Elon Musk reportedly said to “pause all hiring worldwide” due to his “super bad feeling” about the economy, adding a 10% job cut would be needed. (MarketWatch)
  3. Could this tech ETF have finally found its bottom?
  4. These 8 weed stocks did not slow down for Memorial Day.
  5. Kohl's stock enjoyed tailwinds from two fresh buyout bids.

Earnings June 3

Unusual Options Activity June 3

Gold Prices Log Worst Daily Drop Since May

Oil prices closed out higher on Friday, as investors continued to brush off a decision from the Organization of the Petroleum Exporting Countries and their allies (OPEC+) to hike production. A drop in U.S. crude inventories, coupled with China's easing Covid-19 restrictions, helped black gold. In turn, July-dated crude added $2, or 1.7%, to close at $118.87 per barrel. For the week, it added 3.3%.

Meanwhile, gold prices settled sharply lower to log their worst single-day percentage drop in three weeks. Pressuring the yellow metal was a strengthening U.S. dollar and today's upbeat jobs report. As a result, August-dated gold fell 1.1%, or $21.20, to settle at $1,850.20 an ounce. The safe-haven commodity also fell 0.3% for the week -- its first weekly loss in three.


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