U.S. stocks drop amid rate concerns

0 Comment(s)Print E-mail Xinhua, February 7, 2023
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NEW YORK, Feb. 6 (Xinhua) -- Wall Street's major averages declined on Monday as investors worried about higher interest rates following a strong U.S. jobs report.

The Dow Jones Industrial Average fell 34.99 points, or 0.1 percent, to 33,891.02. The S&P 500 sank 25.4 points, or 0.61 percent, to 4,111.08. The Nasdaq Composite Index shed 119.5 points, or 1 percent, to 11,887.45.

Nine of the 11 primary S&P 500 sectors ended in red, with communication services and technology down 1.31 percent and 1.22 percent, respectively, leading the laggards. Utilities and consumer staples rose 0.87 percent and 0.02 percent, respectively.

The above moves came after robust U.S. employment figures dented market optimism over an end to Federal Reserve rate hikes.

Friday's data showed the U.S. economy created 517,000 new jobs in January, versus a consensus forecast of just 188,000, while the unemployment rate fell to 3.4 percent.

The data caused markets to price a more hawkish trajectory for U.S. monetary policy, according to analysts.

Also weighing on the market was lackluster corporate earnings, including weakness in high-profile tech companies.

With the earnings season about halfway over, profits for S&P 500 companies are on pace to be 2.7 percent lower for the fourth quarter, according to financial market data Refinitiv.

For the week ending Friday, the Dow slipped nearly 0.2 percent, the S&P 500 gained 1.6 percent and the Nasdaq rose 3.3 percent. Enditem

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