US Market falls on jobs reports, disappointing earnings

The US stock market finished session steep lower on Friday, 03 February 2023, as traders opted to book profit after the markets moving sharply higher for three straight sessions, amid renewed concerns about the outlook for interest rates following the release of much hotter than expected jobs data. Meanwhile, a negative reaction to earnings news from tech giants Google parent Alphabet, Apple, and Amazon also weighed on the markets.

At the close of trade, the Dow Jones Industrial Average index declined 127.93 points, or 0.38%, to 33,926.01. The S&P500 index was down 43.28 points, or 1.04%, to 4,136.48. The tech-heavy Nasdaq Composite Index decreased by 193.86 points, or 1.59%, to 12,006.95.

All 11 sectors ended lower along with the S&P500 Index. Consumer discretionary was bottom performing sector, falling 3.11% followed by communication services (down 2.2%), utilities (down 2.07%), and real estate (down 2.04%) sectors.

ECONOMIC NEWS: The Labor Department's closely watched monthly jobs report said non-farm payroll employment soared by 517,000 jobs in January after surging by an upwardly revised 260,000 jobs in December. The report also said the unemployment rate edged down to 3.4% in January from 3.5% in December. The stronger than expected labor market renewed concerns that the Federal Reserve will raise interest rates higher than currently anticipated.

The report from the Institute for Supply Management showed services PMI jumped to 55.2 in January from a revised 49.2 in December, with a reading above 50 indicating growth.

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