US stocks open lower as job gains fuel rate hike worries

US stocks open lower as job gains fuel rate hike worries

Investors fret about more aggressive stance from Fed after strong jobs report

By Ovunc Kutlu

ISTANBUL (AA) - US stocks opened lower on Friday as job gains in November have fueled fears of higher interest rate increases from the Federal Reserve once again.

The US economy added 263,000 jobs in November, above the market estimate of a 200,000 gain, despite the Fed's aggressive monetary tightening to lower inflation and efforts to slow down the labor market.

Investors fret about a more aggressive stance from the Fed after the strong jobs report. For the Fed's next meeting on Dec. 13-14, the probability of raising rates by 75 basis points stood at less than 21% on Thursday, but it climbed to almost 28% before the opening bell on Friday.

The Dow Jones lost 229 points, or 0.67%, to 34,165 at 9.34 a.m. EDT (1434GMT). The S&P 500 decreased 40 points, or 1%, to 4,036.

The tech-heavy Nasdaq plummeted 148 points, or 1.3%, to 11,336.

The VIX volatility index, also known as the fear index, soared 4.7% to 20.78. The 10-year US Treasury yield rose 1.6% to 3.583%.

The dollar index jumped 0.4% to 105.15, around its highest in 20 years, while the euro lost 0.4% to $1.0481 against the greenback.

Precious metals reversed course from the previous day's rally. Gold was down 1% to $1,784 per ounce and silver lost 0.6% to $22.62.

Oil prices were mixed with global benchmark Brent crude trading at $86.82 per barrel for a loss of 0.1%, while US benchmark West Texas Intermediate crude was around $81.39, up 0.2%.

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