US OPEN: Wall Street plunges after strong NFP reading

• US indices launched today's cash trading lower
• NFP well above market estimates
• Marvell Technology (MRVL.US) stock slumps on weak financial outlook

Three major Wall Street indices launched today's session sharply lower as upbeat NFP data dashed hopes that the Fed will soon slow its tightening process. Dow Jones fell 0.9%, while S&P500 and Nasdaq dropped 1.15% and 1.45% respectively as the US economy added a net 263k jobs in November, well above analysts’ estimates of 200k which indicates that the labor market remains tight. On top of that, average hourly earnings surpassed expectations and grew 0.6% on the month, adding to the central bank’s room to fight inflation. 

S&P 500 index stocks categorized by sectors and industries. Size represents market cap. Source: xStation5

US100 bounced off a long-term downward trendline after today's NFP release and retracted towards major support at 11700 pts. If current sentiment prevails downward move may deepen towards recent lows at 10460 pts. Nevertheless should buyers regain control and break higher occur, an upward move may accelerate towards key resistance at 13000 pts which is marked with previous price reactions and 38.2% Fibonacci retracement of the upward wave launched in March 2020 . Source: xStation5

Company news:

Marvell Technology (MRVL.US) shares fell more than 5.0% in the premarket after the chip maker posted disappointing quarterly results and issued a weaker than expected outlook as inventory reductions by its customers have a negative affect on its performance.

Marvell Technology (MRVL.US) stock is trading over 50.0% below its highs from December 2021. Yesterday stock pulled back after buyers failed to break above major resistance at $46.60 which coincides with 61.8% Fibonacci retracement of the upward wave launched in March 2020. Downward move accelerated on Friday and if current sentiment prevails, downward move may deepen towards earlier broken downward trendline or even support at $35.38. Source: xStation5

Zscaler (ZS.US) shares fell over 9.0% in off-hours trading as a downbeat financial outlook overshadowed  better than expected quarterly results. The cloud security company  said customers are taking longer to close new deals, and that it faces other headwinds as well.

Rigel Pharma (RIGL.US) shares jumped 34% before the opening bell after the FDA approved its drug to treat a certain type of leukemia.

Opendoor Technologies (OPEN.US) dropped nearly 3.0% after CEO co-founder Eric Wu was replaced by Chief Financial Officer Carrie Wheeler. Wu will transition into the role of “president of the marketplace.”