The S&P 500 declined in turbulent trading on Friday as a plunge in Amazon dragged on consumer companies. The fresh employment data dampened hopes for an earlier stop in Federal Reserve rate rises.
The S&P 500 plummeted 1.01 %, the Dow Jones sank 0.46 %, and the Nasdaq fell 1.4 %. Amazon shares declined more than 8% after a more than 7% gain during the last US session. Alphabet also ended the week in the red with more than 2.5% decline. Apple managed to keep its gains from the last day and piled on 2.5% more.
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According to data released on Friday, the US economy added 517,000 employment opportunities last month, far above the 185,000 positions predicted by experts. The month-over-month increase in average hourly wages fell to 4.4% in January, but was higher than predicted. The robust employment data prompted some Wall Street analysts to modify their forecasts for a Fed halt next month.
The US dollar enjoys a strong week’s close
Strong US employment statistics supported the US dollar, the leading currency in the foreign exchange market today. USD/CAD increased 0.66% during the US session after reaching an intraday bottom of 1.3311 before the opening of Wall Street.
GBP/USD slumped 1.4% to a month low to the 1.20 area as everyone moves back to the dollar. EUR/USD ended the week with a downfall, after ECB’s 50 basis point hike from a day before. The US job data clearly played in favor for the dollar and moved the pair 1% lower, below 1.08. EUR/USD was briefly touching 1.1 during the week.
Dollar’s rise is pulling the commodities to the red zone
Historically, positive US employment figures led almost immediately to a rise in oil prices. Not any longer. Crude prices fell 7% for the week, pushing global benchmark Brent below $80 per barrel down 2.9%. WTI futures for March fell to the low $70s by 3.5%. US employment data boosted the dollar which was not good for the commodities.
Natural gas futures closed 21% lower this week as the weather keeps weighing on the price. The Henry Hub traded around $2.4 which is another 2% lower since last close.
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Gold futures for March delivery were not able to withstand the dollar’s pressure and moved well below $1,900 to close the week 2.7% lower. The yellow metal’s little brother silver, also for March, slumped more than 5%.
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