Wall Street closed sharply lower on Friday after the release of jobs data that stoked fears about an even slower pace of rate cuts from the central bank. The Dow Jones Industrial Average fell 1.6%, or 696.75 points, to close at 41,938.45, with 26 components ending in negative territory.
The Nasdaq Composite lost 317.25 points, or 1.6%, to close at 19,161.63, while the S&P 500 declined 91.21 points, or 1.5%, to close at 5,827.04. The fear gauge CBOE Volatility Index (VIX) rose 8.1% to 19.54.
The unexpected acceleration in job growth in December and a decline in the unemployment rate to 4.1% fueled concerns about the central bank’s rate-cutting pace. This reinforced views that the Fed would reduce rates slower than initially promised, leading to a slide in markets across all sectors except energy.
Shares of Molson Coors Beverage Company (TAP) and CBRE Group, Inc. (CBRE) fell 5.7% and 4.7%, respectively, as investors reacted to the news. The strong labor market has remained resilient, with nonfarm payrolls increasing 256,000 in December, but this also led to concerns about the Fed’s rate-cutting pace.
The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed their second straight losing week, with the tech sector boosted earlier in the week by expected tariff measures from the incoming Trump administration.
Source: https://finance.yahoo.com/news/stock-market-news-jan-13-141900315.html