Monday, January 17

Wall Street: Tech stocks tumbled on volatile trading day

“In the S&P 500, if you look below the surface, there is a lot of slaughter in tech stocks that were somewhat overvalued and that is what is primarily contributing to the volatility,” said Jamie Cox, managing partner at Harris Financial Group.

Market futures had been stable after the A Labor Department report that showed nonfarm payrolls rose 210,000 in November, well below the 550,000 forecast by economists polled by Reuters. The unemployment rate fell to 4.2%, the lowest since February 2020, and wages rose further.

“With this jobs report, the Fed may pause to say it’s okay, we don’t have to accelerate (the reduction in asset purchases) in December. We can wait a few more weeks until we have better data on omicron and know what. we face”, said Thomas Hayes, managing member of Great Hill Capital LLC in New York.

Fed Chairman Jerome Powell said this week that the central bank will consider a faster reduction of its bond-buying program, a move that is seen as opening the door to interest rate hikes earlier than projected.

The three main market indices are heading for weekly losses, with Wall Street’s fear gauge, the CBOE Market Volatility Index, surging above 30 for the first time in 10 months this week.