- Markets
- S&P 500 -4.8%
- Dow Jones Industrial Average -4.5%
- NASDAQ -4.2%
- Russell 2000 -8%
Domestic equity markets finish the week down following Jerome Powell’s testimony, increasing payroll numbers, and high job openings. The Federal Reserve Chairman testified in front of Congress that inflation is hotter than expected. As a result, the Fed will increase interest rates higher than its previous guidance. Payroll and benefits administrator Automatic Data Processing (ADP) showed companies added 242,000 jobs in February, which was more than expected. And from a Fed perspective, more jobs leads to more inflation. The Job Openings and Labor Turnover Survey (JOLTS) remained unchanged at 1.9 jobs available for every 1 unemployed person. It likely means higher wages which means higher business costs and ultimately leads to higher inflation. The news of higher inflation and higher rates sent markets south.