May 6 (UPI) — The three major stock indexes in the United States saw losses on Friday after a tumultuous week of trading even amid a strong jobs report and the Federal Reserve‘s decision to raise interest rates by half a percentage point to combat inflation.
The Nasdaq Composite fell more than 173 points, or 1.4%, on Friday as the S&P 500 fell 0.57% and the Dow Jones Industrial Average dropped 0.30%, according to Nasdaq market data.
The Nasdaq and the S&P 500 have each declined for five straight weeks, Financial Times noted, making it the worst streak of losses for the Nasdaq since November 2012 and for the S&P 500 since June 2011.
The U.S. economy added almost 430,000 jobs during April, the Labor Department said in its monthly report Friday. The jobs report exceeded most economists’ expectations and showing that the job market remains strong.
The department said there 428,000 people were hired during the month. Most analysts expected the report would show about 400,000 new jobs.
Investor’s Business Daily reported that the strong jobs report “raised worries that the economy is strong enough to absorb higher interest rates, and that appeared to unsettle the stock market.”
“While the prospect of rate hikes and asset sales from the central bank have taken some of the frothiness out of the market, they haven’t harmed the underlying economy too much, at least not yet,” Martin Tillier, a contributor to Nasdaq, said Friday.
The Dow had risen 932 points Wednesday as investors rallied behind the interest hike before a massive selloff Thursday that saw the blue-chip index fall 1,063 points, or 3.12%.