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Job data ended the winning series of Wall Street indexes

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The main Wall Street indexes retreated from their historic highs after stronger-than-expected US job data have cooled the hopes of mitigating the Federal Reserve’s monetary policy.

The blue-chip index Dow Jones Industrial Average declined by 43.88 points and reached a level of 26,922.12 points, interrupting its four-day winning series. The broader S&P 500 saw a decline of 0.18% to 2,990.41 points and ended its five-day winning series. The technology benchmark Nasdaq Composite dropped for the first time in seven sessions, declining by 0.10% to 8,161.79 points. Earlier in the session, the Dow fell by 232.67 points, while the drop of the S&P 500 and Nasdaq was near 1%.

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The CBOE Volatility Index, which measures the implied volatility of S&P 500 options, was up 5.65% to 13.28.

Despite the losses on Friday, the main indexes registered stable weekly growth. Dow Jones and S&P 500 added more than 1% this week, and Nasdaq advanced by nearly 2%. The indexes reached record highs on Wednesday.

The US economy has added 224,000 jobs in June. Economists predicted that the country created 165,000 new jobs last month after poor data in May when the economy added only 75,000 jobs.

The yields on 10-year and 30-year US Treasuries rose to 2.037% and 2.542%, respectively, after data were released. Banking stocks appreciated thanks to the rising US bond yields. Citigroup, Bank of America, J.P. Morgan Chase and Wells Fargo recorded growth.

Before Friday’s session, investors relied on the presumption that the Federal Reserve will lower interest rates later this month. The CME Group FedWatch showed that the July interest rate cuts are expected to be 100%. Last month, the Fed said it would “act accordingly” to keep the current growth of the US economy, which is the longest in history.

After posting job data, expectations fell to around 94%.

Corporate stocks performance

Samsung warned that second-quarter profit would probably fall by 56% on a yearly basis due to the weak demand for memory chips. The warning has put pressure on semiconductor maker stocks like Broadcom, which has dropped by 0.8%. Micron Technology also lost 0.4% of its value.

Qualcomm was down by 3%, while ASML Holdings and Nvidia took some of the deepest declines among Philadelphia Semiconductor Index stocks. The iShares PHLX Semiconductor ETF (SOXX) fell by 1.2%.

Goldman Sachs Group and Nike were among the best performers among the blue-chips.

The shares of 3M Company are down by 1.66%, while Merck & Company declined by 1.47%.

Financial stocks got a bid, as bond yields rose following the jobs report. The Financial Sector was among the only S&P 500 sectors showing gains Friday, while Goldman Sachs Group (+0.90%) and JPMorgan Chase (+0.59%) were two of the nine Dow components that gained ground.

The SPDR S&P Pharmaceuticals Exchange Traded Fund fell by 1.6% after President Trump said he was preparing an executive order that would allow the US to buy drugs based on the lowest price paid by developed countries.

Walt Disney dipped 0.6% in early trade. Disney stock has logged a four-day advance, leaving it up about 2% for the week.

The top performers on the S&P 500 were Signet Jewelers (+5.87%), Jefferies Financial Group (+3.47%) and EQT Corporation (+2.66%), while on the flipside were Electronic Arts (-4.60%), IPG Photonics Corporation (-4.32%) and Regeneron Pharmaceuticals (-3.58%).