(Sharecast News) - US stocks fell sharply on Friday as investors digested a mixed January employment report amid an escalation of concerns about a trade war following comments from Donald Trump.
While the market reaction to the jobs data was marginal, stocks sank in afternoon trade after Trump he said that the government would impose retaliatory trade tariffs on countries that charge additional duties on US imports. The measures would begin as early as Monday or Tuesday, he said, but didn't specify which countries would be affected.
"That headline hit the tape like a lead balloon, forcing traders to hit the brakes on risk sentiment. Stocks took a sharp turn lower, erasing earlier gains as markets braced for another round of trade war drama," said Stephen Innes, managing partner at SPI Asset Management.
The S&P 500 and Dow finished 1% lower, while the Nasdaq dropped 1.4%.
According to the US Department of Labor, seasonally adjusted non-farm payrolls grew 143,000 in January, well below the 170,000 expected by the market and the revised gain of 307,000 for December. However, November and December's tallies for payrolls combined were marked up by 100,000.
Average hourly earnings grew by 0.5%, coming in noticeably ahead of economists of forecasts (consensus: 0.3%), while the unemployment rate ticked 10 basis points lower to 4.0%.
"January's strong US employment report supports our view that the Fed will stay on the sidelines during the rest of 2025, as well as our forecast that the 10-year Treasury yield will end the year higher," said Joe Maher, assistant economist at Capital Economics.
Analysts at ING chipped in, adding: "There are still lingering concerns about the quality of jobs being added, but an improving trend in jobs creation since late summer means the Fed will hold rates until 3Q."
Elsewhere on the macro front, US wholesale inventories decreased 0.50% month-on-month in December, while the University of Michigan's consumer sentiment index dropped to 67.8 in January from 71.1.
Amazon disappoints
Shares in Amazon came under pressure on Friday after fourth-quarter numbers from the US tech giant underwhelmed. Net sales jumped 10% to $187.8bn, fuelled by a bumper holiday shopping season, while operating income rose to $21.2bn from $13.2bn year-on-year. However, sales in its cloud division, Amazon Web Services, disappointed, while estimates for the first quarter also failed to meet analyst expectations, causing the stock to sink 4%.
Heading the other way was travel technology group Expedia, surging 17% after announcing that Q4 profits and revenues had grown thanks to increased bookings across segments.
Trending cosmetics firm E.l.f. Beauty dropped 20% after lowering its outlook for the full year and reporting third-quarter profits that missed forecasts.
Social media picture-sharing platform Pinterest jumped 19% after posting strong revenue growth in the fourth quarter, helped by a double-digit gain in monthly active users.
Dow Jones - Risers
Coca-Cola Co. (KO) $63.85 0.76%
Chevron Corp. (CVX) $152.55 0.47%
Visa Inc. (V) $348.27 0.16%
Dow Jones - Fallers
Amgen Inc. (AMGN) $293.54 -4.57%
Nike Inc. (NKE) $68.68 -4.27%
Intel Corp. (INTC) $19.10 -2.64%
Boeing Co. (BA) $181.56 -1.79%
Apple Inc. (AAPL) $227.63 -1.71%
Walmart Inc. (WMT) $101.15 -1.65%
Home Depot Inc. (HD) $407.37 -1.64%
3M Co. (MMM) $149.74 -1.61%
Salesforce.Com Inc. (CRM) $325.83 -1.51%
Microsoft Corp. (MSFT) $409.75 -1.33%
S&P 500 - Risers
Expedia Group Inc. (EXPE) $202.37 17.50%
Take-Two Interactive Software Inc. (TTWO) $208.77 13.87%
TripAdvisor Inc. (TRIP) $18.29 4.66%
Lincoln National Corp. (LNC) $37.02 3.55%
Principal Financial Group Inc (PFG) $82.33 3.38%
Fortinet Inc. (FTNT) $107.66 3.33%
Nvidia Corp. (NVDA) $129.84 3.32%
Globe Life Inc. (GL) $123.56 2.92%
Freeport-McMoRan Inc (FCX) $38.26 2.88%
Arista Networks Inc. (ANET) $118.47 2.78%
S&P 500 - Fallers
Illumina Inc. (ILMN) $111.06 -11.08%
Nektar Therapeutics (NKTR) $0.68 -9.97%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $374.79 -9.09%
Dxc Technology Company (DXC) $20.85 -6.62%
Advance Auto Parts (AAP) $45.96 -5.99%
Hanesbrands Inc. (HBI) $7.53 -5.51%
Air Products & Chemicals Inc. (APD) $310.46 -5.39%
Western Union Co. (WU) $10.60 -5.35%
Kohls Corp. (KSS) $12.08 -5.33%
D. R. Horton Inc. (DHI) $129.02 -5.27%
Nasdaq 100 - Risers
Expedia Group Inc. (EXPE) $202.37 17.50%
Take-Two Interactive Software Inc. (TTWO) $208.77 13.87%
Nvidia Corp. (NVDA) $129.84 3.32%
Booking Holdings Inc. (BKNG) $4,887.47 2.73%
Marriott International - Class A (MAR) $303.97 2.52%
Skyworks Solutions Inc. (SWKS) $65.69 2.14%
Vodafone Group Plc ADS (VOD) $8.57 1.66%
Comcast Corp. (CMCSA) $34.37 1.60%
Meta Platforms Inc. (META) $714.52 1.35%
Kraft Heinz Co. (KHC) $29.30 1.28%
Nasdaq 100 - Fallers
Illumina Inc. (ILMN) $111.06 -11.08%
Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $374.79 -9.09%
Amgen Inc. (AMGN) $293.54 -4.57%
Hologic Inc. (HOLX) $64.58 -4.16%
Ross Stores Inc. (ROST) $142.59 -4.10%
Align Technology Inc. (ALGN) $210.55 -4.06%
Micron Technology Inc. (MU) $92.30 -3.87%
J.B. Hunt Transport Services Inc. (JBHT) $166.15 -3.74%
Amazon.Com Inc. (AMZN) $229.15 -3.61%
Vertex Pharmaceuticals Inc. (VRTX) $469.32 -3.60%
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