US STOCKS-Tech stocks drag Wall Street lower after solid jobs data

Reuters

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    * Nonfarm payrolls beat expectations in July
    * Lyft gains as record earnings overshadow cautious outlook
    * Indexes down: Dow 0.45%, S&P 0.87%, Nasdaq 1.32%

 (Adds comment, details; updates prices)
    By Devik Jain and Medha Singh
    Aug 5 (Reuters) - Wall Street's main indexes fell on Friday,
with technology stocks bearing the brunt of a selloff, after a
solid jobs report bolstered the case for the Federal Reserve to
press ahead with interest rate hikes.
    U.S. employers hired far more workers than expected in July,
the 19th straight month of payrolls expansion, with the
unemployment rate falling to a pre-pandemic low of 3.5%.
 urn:newsml:reuters.com:*:nL1N2ZG2G3 
    The report added to a recent batch of data that has painted
a bright picture of the world's largest economy after a
contraction of 1.3% in the first half of the year.
    "A strong job numbers report may not be what the market
wanted as it could lead the Fed to maintain its hawkish stance
and continue to hyper-raise rates," said Jake Dollarhide, chief
executive officer at Longbow Asset Management in Tulsa,
Oklahoma.
    "The strong jobs report along with the prospect of lower
inflation - with falling energy prices - could lead many to
believe that the Fed is that much closer to a soft-ish ...
landing for the economy."
    Focus now shifts to inflation data due next week, with U.S.
annual consumer prices expected to jump by 8.7% in July after a
9.1% rise in June.
    The growth index  .IGX , home to rate-sensitive technology
and related stocks, fell 1.3% as U.S. Treasury yields climbed on
rising odds of a 75-basis-point interest rate hike in September.
    The jump in Treasuries, however, lifted banks  .SPXBK , with
JPMorgan Chase & Co  JPM.N  rising 2.5% to provide the biggest
support to the S&P 500 and the Dow.    
    Several policymakers have this week stuck to an aggressive
policy tightening stance until they see strong and long-lasting
evidence that inflation was trending toward the Fed's 2% goal.
    Worries about a surge in borrowing costs, the war in
Ukraine, Europe's energy crisis and COVID-19 flare-ups in China
have rattled equities this year and prompted analysts to adjust
their earnings expectations for corporate America.
    However, a largely upbeat second-quarter earnings season has
helped the S&P 500 bounce back nearly 13.7% from its mid-June
lows after a rough first-half performance.
    "With the Fed having to continue its fight towards price
stability, the bottoming process most likely is not finished,"
said Quincy Krosby, chief global strategist at LPL Financial.
    "Still, the June low provided an attractive trading bottom,
now the market needs to wait for 'the' bottom."
    At 11:50 a.m. ET, the Dow Jones Industrial Average  .DJI 
was down 147.17 points, or 0.45%, at 32,579.65, the S&P 500
 .SPX  was down 36.02 points, or 0.87%, at 4,115.92, and the
Nasdaq Composite  .IXIC  was down 168.03 points, or 1.32%, at
12,552.55.
    Lyft Inc  LYFT.O  rose 4.6% as the ride-hailing firm
forecast an adjusted operating profit of $1 billion for 2024
after posting record quarterly earnings.  urn:newsml:reuters.com:*:nL4N2ZG4DG
    Declining issues outnumbered advancers for a 2.10-to-1 ratio
on the NYSE and for a 1.34-to-1 ratio on the Nasdaq.
    The S&P index recorded four new 52-week highs and 30 new
lows, while the Nasdaq recorded 38 new highs and 33 new lows.

 (Reporting by Devik Jain, Aniruddha Ghosh and Medha Singh in
Bengaluru; Editing by Anil D'Silva and Aditya Soni)
 ((Devik.Jain@thomsonreuters.com;))

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