The Magnificent 7 tech giants, including Apple Inc (NASDAQ:AAPL)., Amazon.com Inc (NASDAQ:AMZN)., Alphabet (NASDAQ:GOOGL) Inc., Tesla (NASDAQ:TSLA) Inc., Nvidia Corp . (NASDAQ:NVDA), and Meta Platforms (NASDAQ:META), witnessed a decline in their premarket trading shares on Friday. The downturn was triggered by a robust September jobs report, which exceeded expectations and reduced the likelihood of the Federal Reserve terminating its interest rate hike policy.
The stronger-than-expected jobs data has increased pressure on equity valuations, a factor that has been influencing the stock market for some time. This is because a strong labor market could prompt the Federal Reserve to tighten monetary policy faster than previously anticipated, which could potentially make borrowing more expensive and slow down economic growth.
This downward trend was not confined to individual stocks but also impacted index trackers. The SPDR S&P 500 ETF (NYSE:SPY) and Invesco QQQ ETF, which tracks the Nasdaq 100, both reversed from initial gains to losses following the release of the jobs data. These ETFs are often seen as barometers for broader market sentiment, suggesting that investors may be reevaluating their positions in light of the latest economic indicators.
The Friday downturn comes amidst ongoing global economic uncertainties and concerns about inflation and potential interest rate hikes. Investors will be closely watching the Federal Reserve's next moves and any further economic data that could influence market trends.
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