Stocks Skid on Jobs Numbers

Stocks slid Friday as investors digested hotter-than-anticipated jobs data, which worried investors looking for signals that the Federal Reserve can begin slowing interest rate hikes.

The 30-stock index backtracked 190.21 points to open Friday at 34,204.80.

The S&P 500 skidded 34.37 points to 4,042.20, as all 11 sectors besides energy traded down, led by information technology’s 1.4% drop.

The NASDAQ dropped 114.22 points, or 1%, to 11,371.09.

The S&P 500 and the NASDAQ are on track for modest weekly gains, while the Dow is on pace for a minor loss.

Non-farm payrolls increased 263,000 in November, a bigger gain than the 200,000 increase expected by economists polled by Dow Jones. The unemployment rate held steady at 3.7%.

This is the final monthly employment report before the Fed’s two-day meeting Dec. 13-14, in which the central bank is expected to raise its fed funds target rate by a half percentage point. A 50 basis point increase would mark a slowing from the prior 75 basis point rate hikes set by the central bank.

Marvell Technology shares slid 4.9% in the premarket after the chip makers reported quarterly sales and profit fell short of Wall Street estimates and a weaker than expected outlook. The company said its being hurt by inventory reductions from customers.

Zscaler fell 9.1% on its report of conservative guidance despite an expectation-beating quarter. Zscaler said customers are taking longer to close new deals.

Prices for the 10-year Treasury sagged, raising yields to 3.61% from Wednesday’s 3.51%. Treasury prices and yields move in opposite directions.

Oil prices increased 59 cents to $81.81 U.S. a barrel.

Gold prices subtracted $18.20 to $1,797 U.S. an ounce.