Markets have been wobbly all week as investors closely watch the labor markets for more signs of economic growth and consider any information that could give more clues about rising inflation. Labor costs rose at a 1.7% rate in the first quarter, up from the initial estimate that costs had fallen 0.3% in the first quarter. That could stoke more fears that inflation might run hotter than expected.
The S&P 500 index fell 0.8% as of
The early decline has erased all of the markets gains for the week.
Technology companies, whose pricey stock values make them more sensitive to inflation fears, were the biggest weight on the market. Microsoft fell 1.3% and Intel slipped 2.2%.
The losses were shared by every sector in the benchmark S&P 500. A variety of companies that rely on direct consumer spending and communications companies were also had some of the biggest declines. Energy companies and utilities held up better than most sectors, but were still seeing significant drops.
Bond yields rose. The yield on the 10-year
Expectations of a strong increase in hiring have stoked worries about inflation and how the Fed may respond to it. The concern is that the global recovery could be hampered if governments and central banks have to withdraw stimulus to combat rising prices.
Markets in
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