By Medha Singh and Amy Caren Daniel
(Reuters) – US stocks were on pace for their fifth day of Friday's loss after weak US job data in February to concerns over the cooling of global growth triggered by a sharp decline in China's exports and a slow decline in the euro area.
The US economy added only 20,000 jobs in February, compared to 1
"Broad sales are due to the highly unexpected numbers of jobs that were much lower than what people had predicted," said Tom Plumb, Chief Investment Officer of Plumb Funds in Madison, Wisconsin.
"You begin to see the reasons why the Federal Reserve is not going to be tight at least for the first part of this year because they began to see some signs of a slowdown."
The Dow Jones Transport Index, closely monitored by investors to measure the health of the economy, fell 1.60 percent, it is steepest in the last 11 sessions.
Concerns about global growth intensified after exports in China, the world's second largest economy, tumbled most for three years in February, which led to a "trading recession".
This comes on the heels of the European Central Bank and cuts growth forecasts and reveals a new stimulus route.
The technology sector fell 0.88 percent and was the biggest suit on, while Facebook Inc. (NASDAQ :), Amazon.com Inc. (NASDAQ :), Apple Inc. (NASDAQ :), Netflix Inc. (NASDAQ 🙂 dropped between 0.7 percent and 2.5 percent.
The sector came under pressure after Democratic Senator Elizabeth Warren said of elected president, she would attempt to break up Amazon, Alphabet (NASDAQ 🙂 Inc, Google and Facebook.
The three main indices traded at their lowest since February 14 and were headed for their steepest weekly fall for more than two months after starting the year with a strong note.
kl. 12:56 ET, was down 191.89 points, or 0.75 percent, at 25.281.34. The S&P 500 was down 25.68 points, or 0.93 percent, at 2,723.25 and it was down 66.86 points, or 0.90 percent, at 7.335.61.
The energy sector tumbled 2.44 percent when oil prices fell about 2 percent and Norway's trillion dollar sovereign wealth fund said it would release oil and gas companies from its benchmark and investment universe.
Oil majors ExxonMobil (NYSE 🙂 Corp slid 2 percent and Chevron Corp. (NYSE 🙂 fell 1 percent. 19659004] Costco Wholesale Corp (NASDAQ 🙂 jumped 4.56 percent, mostly at S & P, after the stock club's operator quarterly profits trumped estimates as margin pressure eased.
Decline problems overall promoters for a 2.28-to-1 ratio on the NYSE and for a 1.73-to-1 ratio on the Nasdaq.
The S&P index recorded five new 52-week highs and five new downs, while Nasdaq recorded 21 new heights and 46 new downs