US STOCKS-S&P 500, Nasdaq dip; labor market seen tight despite weak payrolls report
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* Nonfarm payrolls rise by 199,000 in December
* GameStop (GME) jumps after report of foray into NFT, crypto markets
* Indexes: Dow up 0.3%, S&P 500 down 0.2%, Nasdaq down 0.7% (Updates to afternoon trading)
By
Consumer discretionary and and technology sectors led the way lower on the S&P 500, while the S&P 500 financials sector and banking index extended recent gains and hit record highs.
Banks have been helped by rising U.S. Treasury yields. The
10-year yield hit its highest since
Friday's Labor Department data showed the U.S. jobs market was at or near maximum employment even though employment rose far less than expected in December amid worker shortages.
It underscored worries over the outlook for rate hikes.
Minutes of the Fed's
"The investor takeaway is that the labor market continues to
be tight despite the headline miss," said
"Investors are anticipating that the Fed will raise rates and continue to quantitative tightening. Investors are concerned the Fed will be more aggressive than expected."
The Dow was up slightly, helped by industrial shares.
The Dow Jones Industrial Average rose 96.45 points, or 0.27%, to 36,332.92, the S&P 500 lost 8.09 points, or 0.17%, to 4,687.96 and the Nasdaq Composite dropped 110.21 points, or 0.73%, to 14,970.66.
Investors have been rotating out technology-heavy growth shares and into more value-oriented shares, which they think may do better in a high interest-rate environment.
The S&P 500 energy sector has gained more than 10% so far this week and was set for its best weekly rise in more than one year.
The S&P 500 value index is up 0.4% versus a 0.7% decline in the S&P 500 growth index.
"Meme stock" GameStop Corp (GME) jumped 2.7% after the
video game retailer said it is launching a division to develop a
marketplace for nonfungible tokens and establish cryptocurrency
partnerships.
(Reporting by