Wall Street down after US jobs and Elon Musk warning, Corporate news

PARIS, June 3 (Reuters) – The New York Stock Exchange opened lower on Friday after the boss of Tesla warned about the economic outlook, while figures published by the Labor Department on the situation of the labor market in the United States plead for an acceleration of monetary tightening.

About ten minutes after the first exchanges, the Dow Jones index lost 299.04 points, or 0.9%, to 32,949.24 points and the wider Standard & Poor’s 500 fell -1.39% to 4,118 .68 points.

The Nasdaq Composite lost 2.01%, or 247.16 points, to 12,069.72.

An hour before Wall Street opened, the Labor Department reported that the U.S. economy added more jobs than expected in May, while the jobless rate held steady at 3.6%, showing the robustness of the labor market and could encourage the US Federal Reserve to accelerate the rise in interest rates.

Half-point rate hikes are expected this month and July in the United States, and US Federal Reserve Vice Chair Lael Brainard said on Thursday there was little chance of a a break in the rise in the cost of credit is observed in September, as the financial markets hope.

In values, Tesla fell 6.3%, Elon Musk, the group’s chief executive, having announced in an email sent Thursday to company executives that he wanted to reduce the automaker’s workforce by 10%, due, he said. , of “a very bad feeling” for the outlook for the economy.

“Elon Musk tends to say exactly what he thinks and believes, and he’s right,” said Fiona Cincotta, financial markets analyst at City Index.

“Even though the Fed thinks a soft landing is possible, I think there are warning signs in the economy. The question is whether the Fed will be able to act as aggressively as it needs to ( …) Musk doesn’t think she’s going to be able to do that without plunging the economy into a deep recession,” she adds.

Jamie Dimon, CEO of JPMorgan Chase, also said this week that the US economy was facing “hurricane-like” challenges.

In the rest of the values, Apple fell 3.2% after information that the Member States of the European Union and the Parliament are about to reach an agreement to impose a single charger for phones, tablets and headphones.

Kohl’s gained 2.3%, the department store group having received, according to the Wall Street Journal, takeover offers from Sycamore Partners and Franchise Group (-2.7%).

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