NEW YORK, Feb 7 (Reuters): Wall Street stocks fell on Friday as a
better-than-expected US jobs report raised expectations that the Federal
Reserve will increase interest rates by midyear, while renewed worries
over Greece's debt negotiations added to the bearish tone.
The S&P 500 index of utilities, often used as a bond proxy by investors in a low-rate environment, fell 4.1 per cent, its biggest daily drop since August 2011, as US government debt yields jumped.
In another sign of concern about interest rates, Simon Properties, a real estate investment trust, sank 4 per cent at $195.08.
But the financial sector, which tends to benefit from rising interest rates, rose 0.7 per cent.
Still, all three major indexes registered strong gains for the week, with the Dow industrials rising 3.8 per cent for its biggest weekly gain since January 2013.
Nonfarm payrolls increased more than expected in January and wages rebounded, while employment numbers for November and December were revised sharply higher, the US Labor Department reported. The unemployment rate ticked up to 5.7 per cent as a result of an increased labor force.
After the report, traders added to bets that the US central bank will start to hike interest rates by midyear.
The S&P 500 index of utilities, often used as a bond proxy by investors in a low-rate environment, fell 4.1 per cent, its biggest daily drop since August 2011, as US government debt yields jumped.
In another sign of concern about interest rates, Simon Properties, a real estate investment trust, sank 4 per cent at $195.08.
But the financial sector, which tends to benefit from rising interest rates, rose 0.7 per cent.
Still, all three major indexes registered strong gains for the week, with the Dow industrials rising 3.8 per cent for its biggest weekly gain since January 2013.
Nonfarm payrolls increased more than expected in January and wages rebounded, while employment numbers for November and December were revised sharply higher, the US Labor Department reported. The unemployment rate ticked up to 5.7 per cent as a result of an increased labor force.
After the report, traders added to bets that the US central bank will start to hike interest rates by midyear.
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