U.S. stocks retreated on Monday after good news on the job market added to inflation worries, the Associated Press reports. Futures for the S&P 500 dropped 0.9%, and Dow Jones Industrial Average futures lost 0.4%.
On Friday, stocks tumbled, taking their cues from the bond market, where yields leaped after a report said U.S. employers added many more jobs last month than economists expected.
Markets have been deflating after traders sent U.S. stock indexes to dozens of records last year, banking on a stream of rate cuts coming from the Fed. If fewer cuts materialize than expected, stock prices would likely either need to fall, or profits at companies would have to rise more strongly to compensate.
Oil prices surged more than $1 a barrel after President Joe Biden’s administration expanded sanctions against Russia’s energy sector over its war in Ukraine. The Biden administration said the sanctions announced Friday were the most significant to date against Moscow’s oil and liquefied natural gas sectors, major drivers of Russia’s economy.
U.S. benchmark crude oil surged $1.48 to $78.06 per barrel, while Brent crude, the international standard, rose $1.38 to $81.14 per barrel.
In other dealings Monday, the U.S. dollar fell to 157.41 Japanese yen from 157.82 yen.
