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US stocks close lower after strong jobs report

US stocks close lower after strong jobs report

New York: US stocks closed sharply lower after an upbeat jobs report sent interest rates up.

The Dow Jones Industrial Average on Friday lost 665.75 points, or 2.54 per cent, to 25,520.96. The S&P 500 decreased 59.85 points, or 2.12 per cent, to 2,762.13, Xinhua news agency reported.

The Nasdaq Composite Index was down 144.92 points, or 1.96 per cent, to 7,240.95.

Total nonfarm payroll employment increased by 200,000 in January, and the unemployment rate stayed unchanged at 4.1 per cent, stronger than market expectations, the US Bureau of Labor Statistics reported on Friday.

Average hourly earnings posted a 0.3 per cent gain for the month and an annualized gain of 2.9 per cent.

The data sent interest rates higher. The 10-year Treasury yield jumped to as high as 2.85 per cent, a four-year high, putting pressure on the stocks.

On the earnings front, Alphabet reported its fourth-quarter earnings Thursday afternoon, missing Wall Street earnings expectations but beating revenue estimates. Both Apple and Amazon reported better-than-expected quarterly results on Thursday after the closing bell.

Shares of Exxon Mobil dropped 5.10 per cent to close at $84.53 apiece after it reported weaker-than-expected earnings on Friday.

IANS