Nasdaq Composite sends the week with a decline of 5.4 percent.
US indices ended the trading session on Friday with sharp declines after massive sell-offs of shares in technology companies. Investors fear and that the US Federal Reserve (Fed) may raise interest rates this year after the mixed employment data, published today, says CNBC.
The blue chip index Dow Jones Industrial Average dipped by 1.29 percent on Friday, or 212.02 points, and 1.6% for the week to 16 204.56 points. The broader index Standard & Poor's 500 daily noted a fall of 1.85% and a week from 3.1% to 1 880.01 points, dragged by technology stocks.
Technological benchmark Nasdaq Composite today plunged by 3.25% and 5.4% in the week to 4 363.14 points. Giants the likes of Apple, Facebook and Amazon dragged the index after its shares fell 2.7%, 5.8% and 6.4%, respectively.
The price of shares of the online platform for professionals and specialists in Human Resources LinkedIn did tumbled 43.6 percent to 108.38 dollars a share after a poor forecast performance. This is the largest daily price drop for the company in its history, says MarketWatch.
On the corporate front, investors expected interim financial statements of Tyson Foods, Estee Lauder, Moody's, Coca-Cola and others.
Data from the day showed that US unemployment falls to 8-year low in January to a level of 4.9% and new jobs outside the agricultural sector 151 thousand., Which is below expectations, but still signals a stable labor market where employment growth is becoming more sustainable. The median forecast of economists polled by Bloomberg, was for an increase of 190 thousand.
"This is a classic example of how the title looks worse than the actual report," said Art Hogan, chief market strategist at Wunderlich Securities. "The key components of the report are positive."
The data show that companies are confident about the outlook for domestic sales. Further improvement in labor market conditions, causing an increase in wages, would give confidence and the Fed that inflation will reach the target level of about 2%.