Utilities stocks, bonds slump after US reports hiring surge
NEW YORK (AP) — Stocks are ending slightly lower but they’re still closing out a strong week.
News of a burst of hiring at U.S. employers led investors to dump safe-play stocks with high dividends Friday in anticipation of higher interest rates and faster economic growth.
Utilities stocks slumped 4 percent, far more than other sectors.
Two other assets that investors favor during tough economic times, bonds and gold, also fell sharply.
The Dow Jones industrial average fell 60 points, or 0.3 percent, to 17,824.
The Standard & Poor’s 500 fell seven points, or 0.3 percent, to 2,055. The Nasdaq composite lost 20 points, or 0.4 percent, to 4,744.
Twitter and LinkedIn jumped after delivering strong results. Yelp and Pandora Media plunged.
The yield on the 10-year Treasury note rose sharply, to 1.95 percent.