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U.S. private payrolls increase in September - ADP
Twitter eases from one-year high, Tesla falls 6%
Energy stocks jump as OPEC+ agrees deep cuts to oil
Indexes down: Dow 0.97%, S&P 1.31%, Nasdaq 1.86%
Oct 5 (Reuters) - Wall Street fell on Wednesday as a
two-day rally in U.S. stocks was cut short by rising Treasury
yields after data showed firm demand in labor market despite
rising interest rates.
The benchmark S&P 500 index has gained 4% so far this
week as yields fell for two straight sessions on softer U.S.
economic data, UK's tax turnaround and Australia's
smaller-than-expected rate hike.
But the yields on the 10-year Treasury note
recovered sharply as economic data failed to reinforce recent
hopes that the Federal Reserve might pivot to a less hawkish
Adding to the boost, ADP data showed U.S. private employers
stepped up hiring in September, indicating more room for the
Federal Reserve to remain aggressive in its rate hike stance.
"It's a little bit more jobs being created or opened than
the market was expecting and that leads to the belief that the
Fed is not going to be pivoting in November," said Robert
Pavlik, senior portfolio manager at Dakota Wealth in Fairfield,
The Institute for Supply Management's services industry
employment gauge also shot up suggesting demand for labor
remains strong, while the overall industry slowed modestly in
The private payrolls and ISM reports come ahead of a more
comprehensive and closely watched employment report from the
Labor Department for September on Friday.
Rate-sensitive technology and related stocks like Nvidia
Corp, Amazon.com, Apple Inc and
Alphabet Inc fell between 1.3% and 2.8%.
"The market has yet to complete a capitulation," said Peter
Cardillo, chief market economist at Spartan Capital Securities
"The past couple of days was just basically a rally in the
bear market and the market needs desperately to capitulate
before we can see stabilization."
At 11:35 a.m. ET, the Dow Jones Industrial Average
was down 293.33 points, or 0.97%, at 30,022.99, the S&P 500
was down 49.83 points, or 1.31%, at 3,741.10, and the
Nasdaq Composite was down 207.34 points, or 1.86%, at
Banks dipped 2% after jumping 4.4% in the previous
Ten of the 11 major S&P 500 sectors declined, with utilities
and real estate stocks leading losses.
Energy stocks were the sole gainer, up 1.5% after
OPEC+ agreed its deepest cuts to oil production since the 2020
COVID pandemic, curbing supply in an already tight market.
Twitter Inc lost momentum in line with its peers, a
day after surging 22% after billionaire Elon Musk decided to
proceed with his original $44-billion bid to take the social
media company private.
Tesla Inc, the electric-car maker headed by Musk,
Declining issues outnumbered advancers for a 5.29-to-1 ratio
on the NYSE and a 3.36-to-1 ratio on the Nasdaq.
The S&P index recorded two new 52-week highs and nine new
lows, while the Nasdaq recorded 29 new highs and 80 new lows.
(Reporting by Ankika Biswas and Bansari Mayur Kamdar in
Bengaluru; Editing by Arun Koyyur)