愛污传媒

Business

    • Stock market today: Wall Street drops after jobs data raises threat of high rates

    An NYSE sign is seen on the floor at the New York Stock Exchange in New York on June 15, 2022. (AP Photo/Seth Wenig, File) An NYSE sign is seen on the floor at the New York Stock Exchange in New York on June 15, 2022. (AP Photo/Seth Wenig, File)
    Share
    NEW YORK -

    Stocks are falling Thursday after reports suggested the U.S. job market remains much more resilient than expected.

    The S&P 500 was 1% lower in early trading. The Dow Jones Industrial Average was down 354 points, or 1%, at 33,934, as of 9:43 a.m. Eastern time, and the Nasdaq composite was 1.1% lower.

    While a sturdy labor market keeps the economy out of a long-expected recession, it could also push the Federal Reserve to keep interest rates higher for longer in its campaign to defeat high inflation. That in turn could mean more pressure down the line on the economy and financial markets.

    A report from ADP Research Institute suggested hiring by private employers was much stronger last month than economists expected, with nearly twice as many jobs created than forecast.

    The ADP report can be volatile and "isn't necessarily a good predictor of the monthly jobs report" that is more comprehensive and due from the U.S. government on Friday, said Mike Loewengart, head of model portfolio construction at Morgan Stanley Global Investment Office.

    But it also paired with a separate report showing that the number of U.S. workers applying for unemployment last week remains low relative to history, even if it was a bit higher than expected.

    More reports on the economy will arrive later in the morning, including one showing how many job openings employers advertised in May and the latest monthly update on the health of the services sector.

    Thursday's pullback for Wall Street follows a big rally through the first half of the year built amid relief that the economy has remained surprisingly resilient despite much higher interest rates.

    The Federal Reserve has raised its federal funds rate by a mammoth 5 percentage points from virtually zero early last year in order to smother the worst inflation in decades. High interest rates work by slowing the entire economy, and unanticipated cracks often appear in areas of the economy under the pressure.

    The Fed's breakneck pace over the last 16 months has already helped caused several failures in the U.S. banking system, as well as hits to the housing market and other corners of the economy.

    But inflation has also slowed since peaking last summer. The hope on Wall Street had been that just one or two more rate hikes would be on the way this year before the Fed could begin cutting rates in the first part of next year.

    But Thursday's surprisingly hot data on the job market could keep the Fed inclined to keep rates high for even longer than expected.

    Yields jumped in the bond market on such expectations. The yield on the 10-year Treasury rose to 4.02% from 3.94% late Wednesday. It helps set rates for mortgages and other important loans.

    The two-year Treasury yield, which moves more on expectations for the Fed, leaped to 5.06% from 4.95%. It's back to where it was in early March, before the failures of Silicon Valley Bank and other banks rattled confidence across financial markets.

    On Wall Street, bank stocks were sliding to some of the sharpest losses amid worries about higher interest rates. Zions Bancorp fell 4.4%, and Comerca dropped 4.4%. PacWest Bancorp slid 6.2%

    Big Tech stocks also tend to be some of the hardest hit by high interest rates, along with other high-growth stocks. A 1.6% drop for Amazon and 1.5% fall for Nvidia were two of the heaviest weights on the S&P 500.

    Both remain comfortably up for the year so far, though, with Nvidia still up 185%.

    Meta Platforms, the parent company of Facebook, Instagram and WhatsApp, was an outlier. It added 0.5% after unveiling its new app Threads, a rival to Twitter, which has had a bumpy ride under new owner Elon Musk.

    Stock markets fell sharply abroad.

    China's market has been under particular pressure recently as the recovery for the world's second-largest economy sputters following the removal of anti-COVID restrictions. Tensions between China and the United States have also weighed on the market, and U.S. Treasury Secretary Janet Yellen visited China Thursday attempting to improve relations.

    Hong Kong's Hang Seng index dropped 3%, partly due to heavy selling of Chinese banks shares after Goldman Sachs downgraded them, citing concerns about the slowing economy and lenders' exposures to debt. Stocks in Shanghai fell 0.5%.

    Japan's Nikkei 225 dropped 1.7% after being one of the world's stars through the first half of the year.

    In Europe, France's CAC 40 tumbled 2.6% and Germany's DAX lost 1.9%.

    ----

    AP Business Writers Elaine Kurtenbach and Matt Ott contributed.

    CTVNews.ca Top Stories

    The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.

    A memorial is growing outside a Walmart in Halifax after a 19-year-old employee was found dead inside an oven in the store Saturday night.

    A search has started at Prairie Green Landfill for the remains of two victims of a serial killer.

    He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.

    Canada's discount airline is suspending operations to and from Saskatoon.

    A new report suggests that Canadians' exposure to a radioactive gas is increasing, putting millions of people at a higher risk of developing lung cancer.

    Canada

    • Two B.C. RCMP officers won鈥檛 face criminal charges for their use for force that left a man who had been arrested for public intoxication with a concussion, a torn shoulder and a chunk of his hair missing 鈥 but they could face professional discipline.

    • Speed was a possible factor in a Tuesday night rollover involving a semi-truck that left 17 cows dead. In a news release Wednesday, Calgary police said officers were called to the area of Stoney Trail S.E. and Macleod Trail S.E. around 8:10 p.m. for a reported rollover involving a semi-truck carrying 95 cattle.

    • A Real Canadian Superstore in B.C.'s Fraser Valley was evacuated Tuesday night due to a "suspicious" fire in the toilet paper aisle, according to authorities.

    • The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.

    • He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.

    World

    Politics

    Health

    Sci-Tech

    • Vancouver Fire Rescue Services received its first shipment of new firefighting gear on Wednesday, advancing the department's plans to reduce cancer risk for its members.

    • A meteor lit up our region's sky last night 鈥 with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.

    Entertainment

    Business

    • Canada's discount airline is suspending operations to and from Saskatoon.

    • Things could be looking up for Waterloo, Ont.-based company and former tech darling Sandvine, after being removed from the U.S. Department of Commerce Entity List earlier this week.

    Lifestyle

    • A new resident at a Manitoba animal rescue has waddled her way into people's hearts.

    • The Radium Hot Springs in British Columbia's Kootenay National Park has undergone a $29-million makeover.

    Sports

    Autos

    Local Spotlight

    He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.

    A meteor lit up our region's sky last night 鈥 with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.

    Residents of Ottawa's Rideauview neighbourhood say an aggressive wild turkey has become a problem.

    A man who lost his life while trying to rescue people from floodwaters, and a 13-year-old boy who saved his family from a dog attack, are among the Nova Scotians who received a medal for bravery Tuesday.

    A newly minted Winnipegger is hoping a world record attempt will help bring awareness for the need for more pump track facilities in the city.

    A Springfield, Ont. man is being hailed a 'hero' after running into his burning home to save his two infant children.

    Hortense Anglin was the oldest graduate to make her way across the platform at York University's Fall Convocation ceremony this week. At the age of 87, she graduated with an Honours degree in Religious Studies.

    Looking for a scare with good intentions this Halloween season? The ghosts and ghouls of Eganville, Ont. invite families to tour the Haunted Walk at Lekbor Manor.

    The image of a sleepy Saskatchewan small town with 'not a lot going on' is a well-known anecdote. However, one Saskatchewan company is hoping to change that 鈥 and allow communities both on and off the beaten path to share their stories and advertise what they have to offer.

    • Legend has it that on a dark evening in 1988, friends of Supt. Joe Atherton quietly buried his body on the site of the old provincial RCMP headquarters in Vancouver.

    • Since the record-breaking atmospheric river hit Metro Vancouver last Friday, 266 drivers have filed ICBC claims for water damage to their vehicles. In some places, flood water was so deep, cars floated away with the drivers still inside, and the engine running.

    • Brittany La Torre and her husband Marc moved into their West Vancouver home just six months ago, but after last weekend's storm brought a torrent of muddy water and debris into their basement, knocking out power, they're not sure whether they'll be living in it six months from now.

    • He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.

    • Brampton is looking to the federal and provincial government to address the growing number of its vulnerable international students being exploited and trafficked.

    • A proposed inner-city apartment complex development by Anthem Properties is raising concerns for some residents of Hillhurst and West Hillhurst.

    • A new report suggests that Canadians' exposure to a radioactive gas is increasing, putting millions of people at a higher risk of developing lung cancer.

    • Speed was a possible factor in a Tuesday night rollover involving a semi-truck that left 17 cows dead. In a news release Wednesday, Calgary police said officers were called to the area of Stoney Trail S.E. and Macleod Trail S.E. around 8:10 p.m. for a reported rollover involving a semi-truck carrying 95 cattle.

    • One person has died and others have been injured after a two-vehicle collision involving a tractor trailer and a car on Highway 7 in eastern Ontario, according to police.

    • Homeowners with a variable rate mortgage in Ottawa can expect to see some savings thanks to a significant rate cut by the Bank of Canada.

    • A Zamboni driver in western Quebec has been arrested on suspicion of impaired driving after a low-speed crash at a hockey rink on Monday.

    • A pedestrian is in critical condition after being struck by a car in Saint-Michel Wednesday evening.

    • Nigel Berkley and CRARR plan to file complaints with the police ethics commissioner and the human rights commission after Berkley was repeatedly stopped while driving his mother's car over four months.

    • Montreal Mayor Valerie Plante will not be seeking re-election.

    • An Edmonton tow truck operator has been charged after police say he refused to release a vehicle to its owner.

    • The City of Edmonton has a long road ahead to replace aging ice arenas as demand for ice time increases.

    • The leader of Alberta's Official Opposition rolled up his sleeves for his COVID-19 and flu shots today, opting to receive them in front of media because he's concerned about vaccine uptake.

    • A memorial is growing outside a Walmart in Halifax after a 19-year-old employee was found dead inside an oven in the store Saturday night.

    • The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.

    • A volunteer treasurer is facing charges after funds went missing from Nova Scotia Premier Tim Houston鈥檚 riding.

    • A search has started at Prairie Green Landfill for the remains of two victims of a serial killer.

    • A 59-year-old man has died following a crash involving three vehicles that started after a tire fell off a car on the Trans-Canada Highway Wednesday morning in the RM of Tache.

    • A Manitoba inmate who was released from custody by mistake has been arrested, according to Winnipeg police.

    • Former Saskatchewan Party MLA Gary Grewal is defending his conduct and disagreeing with a recent report from the Conflict of Interest Commissioner (COIC) 鈥 which found he broke rules that prohibit MLAs from being involved with government contracts.

    • Southey RCMP say drivers should expect delays on Highway 6 Wednesday night after a serious crash.

    • Regina police says officers will provide an update Thursday in its search for the suspect of a homicide that took place in the city during the summer of 2023.

    • Detective Robert Hofstetter examined Erb鈥檚 home after her death and came to several conclusions based on the blood stains he found there.

    • A psychologist who recently assessed Geovanny Villalba-Aleman believes he may have experienced a psychotic break before stabbing three people in a gender studies class at a University of Waterloo.

    • Things could be looking up for Waterloo, Ont.-based company and former tech darling Sandvine, after being removed from the U.S. Department of Commerce Entity List earlier this week.

    • The race to form government is heating up ahead of the provincial election on Monday. Both the Saskatchewan NDP and the Saskatchewan Party feel they have the momentum as each leader has been focusing on different areas of the province as the campaign trail nears its end.

    • Canada's discount airline is suspending operations to and from Saskatoon.

    • The Saskatoon civic election is drawing closer, with mayoral candidates outlining their visions to keep the city competitive and attract businesses.

    • A Sudbury jury has found Felicity Altiman guilty of second-degree murder in the December 2020 stabbing death of a Sudbury man.

    • It only took minutes for North Bay pharmacist Brian Chute to be out $1,500 after fraudsters deceptively swapped his bank card with another.

    • The president and CEO of New Brunswick-based Covered Bridge Potato Chips is taking an 'extended leave of absence' after being charged with domestic violence this past weekend.

    • Under tough cross-examination at the London courthouse on Wednesday, Rachel Johnson, 21, was asked a number of times why there was a delay in calling 911

    • A 27-year-old man is miraculously alive after his pickup went over Hawk Cliff near Port Stanley. Fire fighters estimate that from the top to bottom of the embankment is around 270 feet.

    • OPP have confirmed that a transport truck driver crashed into a historic home just southeast of London this morning.

    • A haunted house in the Town of Innisfil is causing a real scare for some people a week before Halloween.

    • Barrie police conducted a search on Wednesday of the last place Autumn Shaganash was seen in hopes of giving her family some answers to her mysterious disappearance.

    • A 34-year-old motorcyclist has died following a collision in Barrie鈥檚 south end on Tuesday.

    • Windsor Fire and Rescue Services has been working to prepare for heightened HAZMAT risk ahead of relaxed restrictions around the transportation of some hazardous materials across the Ambassador Bridge.

    • As hospitals elsewhere in Ontario reintroduce mask mandates due to rising respiratory illnesses, Windsor hospitals are taking a more measured approach.

    • Now that production is set to begin at Windsor鈥檚 battery plant, NextStar is looking for some employees to make that production happen.

    • Two B.C. RCMP officers won鈥檛 face criminal charges for their use for force that left a man who had been arrested for public intoxication with a concussion, a torn shoulder and a chunk of his hair missing 鈥 but they could face professional discipline.

    • When 16-year-old Kaydence Bourque was struck and killed in a crosswalk on Cedar Hill Cross Road in Saanich in 2021, the community was shaken to the core.

    • A man who fired at least 19 gunshots at an RCMP detachment in northern British Columbia, narrowly missing officers inside, has won a reduced prison sentence from the province's highest court, which ruled the sentencing judge failed to fully weigh the man's mental illness at the time.

    • Dave Lindsey began growing giant pumpkins to bring a bit of magic to his grandkids' Halloween.

    • A U.S. District Court judge in Montana has sentenced a 27-year-old man from Kelowna, B.C., to 18 months in prison for using fake names to buy guns with the aim of selling them in Canada.

    • Nearly two years after a man was stabbed to death in downtown Kelowna, RCMP have made an arrest in the case.

    • Graduate students looking to become mental-health professionals will have more opportunities to study in the University of Lethbridge鈥檚 Master of Education Counselling Psychology program.

    • A dazzling light display is making its return to Lethbridge this holiday season.

    • As part of anniversary celebrations, the City of Lethbridge is inviting the community to see VisitLethbridge.com Arena like they never have before.

    • The lack of 24-hour public washrooms has been a long-standing issue in the Sault, especially considering the rise in homelessness.

    • The union representing the fire rangers with the Ministry of Natural Resources says money won鈥檛 fix the systemic problems in the workplace.

    • Rallies by a group called Voices Against Violence took place across the country on Monday, including Sault Ste. Marie.

    N.L.

    Shopping Trends

    The Shopping Trends team is independent of the journalists at 愛污传媒. We may earn a commission when you use our links to shop.聽Read about us.

    Stay Connected
    Follow 愛污传媒