Markets Right Now: Indexes slide as energy, tech stocks sink

With 200,000 jobs added to the United States of America economy last month, more than analysts had forecast, expectations are mounting that the Federal Reserve will push forward with more intest rate hikes.

Investors have cited low interest rates are one reason they've continued to buy stocks, even as prices rose faster than corporate earnings.

The S&P 500 fell 3.8%, while the Nasdaq declined 3.5%.

The S&P 500 fell 59.85 points, or 2.1 percent, to 2,762.13, and the tech-heavy Nasdaq composite index dropped 144.92 points, or 2 percent, to 7,240.95. The company's stock dropped 5.3 percent on the back of the report.

The main U.S. stock index ended the day at 25,520, down 665 points from Thursday's close.

JOBS DATA: U.S. employers added a robust 200,000 jobs in January, slightly above market expectations for a 185,000 increase. This, in turn, may lead the Federal Reserve to move more aggressively in the near term to raise interest rates.

"It means you are going to see an inflation picture continuing to firm and strenghten over the course of 2018, which will drive 10-year Treasury yields higher and cause the Fed to reconsider its gradual pace of tightening", Schulze said.

The Fed also expected USA inflation on a 12-month basis to "move up this year and to stabilize" around the central bank's 2 percent target over the medium term.

Federer into Australian Open quarter-final
But if it was playing on his mind, it didn't stop him running Berdych ragged with some of his best shot-making of the tournament. Second seed Federer beat Czech Tomas Berdych in straight sets, 7-6 (7-1), 6-3, 6-4, in the duo's 10th meeting at a grand slam.

Bond yields shot higher after the government reported another month of strong job gains and wage growth, further stoking fears of inflation.

The market has surged in the "Trump rally" as analysts priced in projected higher earnings from the prospect of corporation-friendly tax cuts, regulatory rollbacks and infrastructure investment under the new administration.

Google-parent Alphabet also reported quarterly results, with earnings per share missing expectations. The stock slid $62.39 to $1,119.20.

Among the stocks in the Dow, Apple fell 4.3 percent Friday, Exxon Mobil lost 5.1 percent, Chevron was down almost 6 percent and Goldman Sachs dropped 4.5 percent. Shares in Exxon shed $4.54 to $84.53. The Standard & Poor's 500 index gave up 49 points, or 1.8 percent, to 2,773.

ENERGY: Oil futures declined.

Oil sank lower as well even though it is still trading at its highest level since 2015 in NY. The German DAX index lost 4.2 percent over the week, and South Korea's Kospi index lost 1.9 percent.

The dollar index, tracking the unit against a basket of major currencies, rose 0.72 per cent, with the euro down 0.64 per cent to $1.2428. Wall Street watchers are anxious that the Federal Reserve under new chairman Jay Powell may overreact and boost rates, bringing the market run to a hard halt and slowing the USA economy.

The Dow Jones industrial average fell 252 points, or 1 percent, to 25,937. Hong Kong's Hang Seng index dipped 0.1 percent.


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