US stocks ended the week lower after hawkish comments from the Federal Reserve signaled interest rates would rise more than expected, and a jobs report said the labor market is still hot.

Although the Nasdaq Composite closed 1.3% higher on Friday, its 5.6% drop for the week was the biggest drop since late January. Concerns about a higher “end point” for interest rates have weighed on the tech stocks that make up the index and are more sensitive to high borrowing costs.

The S&P 500 rose 1.4% on Friday to pare its slide over the past five sessions to 3.4%, the biggest weekly decline since late September.

Investors sold stocks after the U.S. central bank implemented its fourth consecutive rate hike of 0.75 percentage points on Wednesday as it tried to bring inflation back to its 2% target. Fed Chairman Jay Powell’s warning that recent data suggests “the ultimate level of interest rates will be higher than expected” sent stocks tumbling and US government bond yields surging. short-term US state.

Investors also looked at data released on Friday that showed the United States added 261,000 jobs in October, beating Wall Street expectations of 200,000. The jobless rate, however, rose 0.2 percentage points to reach 3.7% in October, which is higher than the 3.6% forecast.

Wages, meanwhile, rose 0.4% from the previous month, according to the report, which is higher than the 0.3% increase expected.

Quincy Krosby, chief global strategist at LPL Financial, said the jobs report strengthens the case for a 0.5 percentage point lower rise at the December Fed meeting and ” helped the stock market” because the higher unemployment numbers meant payroll numbers were “falling but not collapsing.” ”.

The U.S. dollar index, which tracks the currency against six peers, fell 1.9% on Friday. The move came after Susan Collins and Thomas Barkin, heads of the Fed’s Boston and Richmond branches respectively, said the central bank should start considering a slowdown in its interest rate hike.

The two-year Treasury yield, which is particularly sensitive to short-term monetary policy expectations, has fallen since its peak on Thursday, when it hit its highest level since mid-2007. The yield on the note fell 0.04 percentage points to 4.66% on Friday.

Chinese stocks soared, extending their weekly gains on hopes that Beijing would alter its longstanding zero-Covid policy. The CSI 300 index of stocks listed in Shanghai and Shenzhen gained 3.3%.

Industrial metal prices soared on the news. Copper, a barometer of the health of the global economy, rose 8% to top $8,000 a tonne for the first time in two months. Other base metals nickel, zinc and tin also jumped more than 5% after falling since March as macro fears overtook supply concerns. Gold gained 2.1% to $1,676.60 per troy ounce.

It also boosted earnings at mining groups Anglo American, up 11.1%, and Rio Tinto, up 7.6% in London. The FTSE 100 rose 2%. In Europe, the regional Stoxx Europe 600 gained 1.8%.

Reports that US regulators had completed a review of Chinese audit reports ahead of schedule boosted investor optimism about Chinese stocks, with the Hang Seng in Hong Kong closing up 5.4% .

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