FYI: U.S. stocks losses deepened early Friday afternoon as investors struggled to reconcile rising rates, and digested the September jobs report, which pointed to strength in the labor market but also underlined concerns about inflation.
Major equity indexes are coming off one of their worst sessions in months as Treasury yields climbed to the highest level since 2011, forcing a broad reassessment of assets that are seen as risky, including stocks.
Technology stocks extended their declines Friday, dragging major U.S. stock indexes lower and putting the tech-heavy Nasdaq Composite on track for its worst week since early spring.
Investors sold shares of the year’s best performers, rotating out of top-returning sectors, such as tech and consumer companies, to instead buy up shares of so-called safety stocks, such as utilities.
The rotation sent the tech-heavy Nasdaq Composite down more than 1.6%. For the week, the index is off 3.7%, on track for its worst performance since the week ended March 23. The Dow Jones Industrial Average fell 245 points, or 0.9%, to 26382, while the S&P 500 dropped 0.8%.
“Tech is definitely pulling back this week, but given the backdrop of strong earnings, it’s just a pullback after a run-up earlier this year, not a reversal,” said Jeff James, portfolio manager at Driehaus Capital Management, who added that he had reduced his tech exposure recently.
Shares of technology companies in the S&P 500, which have been the best performers in 2018 as investors chased growth, slumped 1.6%.
Friday’s selling continued Thursday’s steep declines. One reason for the drop: the recent slide in U.S. government bonds sparked by a crescendo of positive news on the U.S. economy and easing trade tensions. The recent bond-market selloff has sent Treasury yields to multiyear highs.
S&P 500 Sectors: Up/Down: Consumer Discretionary (D) Consumer Staples (D) Communication Services (D) Energy (D) Financials (D) Healthcare (D) Industrials (D) Materials (D) Real Estate (U) Technology (D) Utilities (U)
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2018-10-05/your-evening-briefingBloomberg:
https://www.bloomberg.com/news/articles/2018-10-04/asian-stocks-set-to-slide-on-bond-sell-off-concern-markets-wrap?srnd=premiumWSJ:
https://www.wsj.com/articles/global-stocks-weaken-ahead-of-u-s-jobs-report-1538725849Reuters:
https://www.reuters.com/article/us-usa-stocks/wall-street-hit-as-bond-yields-climb-after-jobs-data-idUSKCN1MF1HWIBD:
https://www.investors.com/market-trend/stock-market-today/stocks-pare-losses-cap-awful-week-market-leaders/MarketWatch:
https://www.marketwatch.com/story/stock-futures-steady-after-thursdays-rout-with-fridays-jobs-report-in-focus-2018-10-05/printCNBC:
https://www.cnbc.com/2018/10/05/us-markets-jobs-report-and-rates-in-focus.htmlEurope:
https://www.marketwatch.com/story/europe-stocks-head-for-weekly-losses-as-investors-grapple-with-rising-us-bond-yields-2018-10-05/printAsia:
https://www.marketwatch.com/story/asian-markets-continue-to-sink-led-by-tumbling-tech-stocks-2018-10-04/printBonds:
https://www.cnbc.com/2018/10/05/us-bonds-and-fixed-income-nonfarm-payrolls-in-focus.htmlCurrencies:
https://www.cnbc.com/2018/10/05/forex-markets-dollar-us-treasury-yields-in-focus.htmlOil:
https://www.cnbc.com/2018/10/05/gold-markets-us-treasury-yields-us-jobs-report-in-focus.htmlGold
https://www.cnbc.com/2018/10/05/gold-markets-us-treasury-yields-us-jobs-report-in-focus.htmlWSJ: Markets At A Glance:
https://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx 
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Regards,
Ted