U.S. stocks settled lower on Friday following an upbeat data on nonfarm payrolls for September, which increased prospects that the Federal Reserve will continue with its aggressive rate-hike campaign.
Nonfarm payrolls climbed by 263,000 jobs last month, above market expectations of 250,000, while the unemployment rate declined to 3.5%, versus estimates of 3.7%.
Money markets are expecting a fourth straight rate increase of 75 basis points at the Fed’s upcoming meeting during November.
Shares of Microsoft Corporation MSFT, NVIDIA Corporation NVDA and Amazon.com, Inc. AMZN, traded lower on Friday.
The Nasdaq 100 dipped 3.88% to close at 11,039.47 on Friday, while the S&P 500 fell 2.80%. The Dow Jones declined around 630 points to settle at 29,296.79 in the previous session.
All the sectors on the S&P 500 closed on a lower note, with information technology and consumer discretionary stocks recording the biggest decline on Friday.
The Chicago Board Options Exchange’s CBOE Volatility Index (VIX) rose 2.8% to 31.36 points on Friday.
What is CBOE Volatility Index?
The CBOE Volatility Index, popularly known as VIX, is a measure of the equity market’s expectation of volatility based on S&P 500 index call and put options.
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