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U.S. equities tumbled at midday as a stronger-than-expected private sector employment report increased concerns that even more Fed interest rate hikes will be coming.
The Dow, S&P 500, and Nasdaq were all down more than 1%.
Virtually every stock in the Dow was in negative territory. Banking and credit card stocks slumped as bond yields skyrocketed after payroll firm ADP said businesses added almost half a million jobs last month.
Tech stocks dropped as they become less attractive when borrowing costs rise. Fears about the impact of higher rates pushed oil futures lower, and that sent shares of Chevron (CVX) and other energy companies sinking. Exxon Mobil (XOM) added to the sector’s decline by warning about falling profits.
Shares of Freeport-McMoRan (FCX), Newmont Corporation (NEM), and other mining firms fell along with prices for gold, copper, and other metals. Shares of retailers, including Home Depot (HD) and Nike (NKE), dipped.
Microsoft (MSFT) was the only stock in the Dow to advance after Morgan Stanley increased its price target on the stock. Shares of Keurig Dr. Pepper (KDP) also jumped on a Morgan Stanley upgrade. Meta Platforms (META) shares advanced as CEO Mark Zuckerberg said 10 million users signed up for its new “Thread” social media site that competes with Twitter.
The U.S. dollar slid versus the euro, pound, and yen. Trading in major cryptocurrencies was mixed.