\u201cThey had fairly strong employment numbers, and the market is now expecting two interest rate hikes from the Federal Reserve, instead of a reduction. And the extremely high valuations of the semiconductor and technology stocks were starting to get out of control.<\/p>\n
\u201cGoogle and Meta are making equity raises, and SpaceX\u2019s listing is priced on full multiples,\u201d Goodson said. \u201cFriday saw a rotation back into healthcare stocks, and this continued today.\u201d<\/p>\n
Ebos Group increased 39c or 1.94% to $20.60, and Fisher & Paykel Healthcare was up 8c to $37.26. A2 Milk gained 21c or 3.32% to $6.53.<\/p>\n
On Wall Street, the S&P 500 and Nasdaq Composite had their biggest one-day falls in more than a year, dating back to the introduction of tariffs, after declines of 2.64% to 7383.754 points and 4.18% to 25,709.43, respectively.<\/p>\n
The Dow Jones Industrial Average was down 1.35% to 50,866.78 points, and the Philadelphia Semiconductor Index slumped 10.26%, after doubling over the past two months.<\/p>\n
One commentator said: \u201cWhat began as a sector-specific re-pricing of semiconductor expectations evolved into a broader risk-off session as the jobs report arrived and transformed the macro backdrop simultaneously.\u201d<\/p>\n
The US May nonfarm payrolls rose by 172,000 \u2013 more than double the Dow Jones consensus of 80,000 and completing the strongest three-month advance in more than two years. Unemployment was steady at 4.3%.<\/p>\n
Offshore, the Japanese Nikkei 225 had fallen 4.2% (at 6pm NZ time), the Hong Kong Hang Seng was down 1.86%; Taiwanese Taiex was down 3.48%, and the South Korean Kospi had declined 6.45%.<\/p>\n
The Australian market was closed for King\u2019s Birthday.<\/p>\n
Local stocks<\/p>\n
At home, Infratil was down 19c to $15.23: Mainfreight declined $1.21 or 1.91% to $62; Freightways shed 47c or 3.44% to $13.20; Auckland International Airport eased 21c or 2.52% to $8.12; and Fletcher Building decreased 6c or 1.94% to $3.03.<\/p>\n
The energy sector, which has risen 12% since the start of the US-Iran conflict in late February, compared with a 5% fall in the NZX50, was weaker following downgrades from broker Forsyth Barr.<\/p>\n
With consumer and business confidence showing signs of stabilising, it will be harder for the sector to outperform the market as a whole, and further declines in wholesale electricity prices will likely lead to lower earnings expectations, Forsyth Barr said in its report.<\/p>\n
Mercury, downgraded from outperform to neutral, was down 16c or 2.27% to $6.90; and Meridian and Genesis, downgraded from neutral to underperform, declined 16c or 2.37% to $5.77 and 7c or 2.65% to $2.57, respectively.<\/p>\n
Forsyth Barr maintained Contact Energy\u2019s outperform rating \u201cas we look through the short-term overhang following Infratil\u2019s sell-down\u201d. Contact was down 12c to $9.48.<\/p>\n
Technology stocks <\/p>\n
Vista declined 9c or 4.05% to $2.13; Serko was down 4c or 2.63% to $1.48; and Eroad gained 2.5c<\/a> or 2.34% to $1.09.<\/p>\n Synlait Milk was up 1.5c or 3.61% to 43c after organising a new $130m, two-year loan<\/a> with Bright Dairy International Investment \u2013 Bright is a majority shareholder \u2013 as part of refinancing its senior syndicated bank facilities that mature on June 30.<\/p>\n Synlait reported a net loss of $12m for the four months ending April after \u201cfacing a number of headwinds outside its control\u201d. The result included a gain from the sale of the Pokeno production plant, and net assets were $720.8m.<\/p>\n Steel & Tube, up 0.005c to 37.5c, has renewed its ANZ banking arrangements<\/a> to September next year on similar terms, and reported that headwinds have returned with trading conditions remaining variable and demand for steel softening.<\/p>\n The company had an improved first quarter ending March with increased revenue and volumes and a return to positive normalised earnings.<\/p>\n Goodson said Steel & Tube was battling mightily with a strained balance sheet, and it was one stock that would need a strong economic recovery.<\/p>\n Channel Infrastructure, down 7c or 2.24% to $3.06, told the market that its 93m litres of diesel storage capacity at Marsden Point for the Government was now in service and provided nine further days of diesel demand coverage.<\/p>\n Ryman Healthcare, up 3c to $2.28, has opened a $100m, six-year bond offer<\/a> with the option to accept an additional $50m. The offer closes on Thursday.<\/p>\n