The US markets slipped on Friday, as a rout in tech stocks helped US equities post their largest weekly drop in a month. Adding to negative sentiment was a jobs report that showed weaker-than-forecast growth in January. The pace of hiring in the US tapered off in January, but wages rose sharply and the unemployment rate dipped below 5% for the first time since 2008 in a mixed report that adds little clarity about the health of the economy. The US generated 151,000 nonfarm jobs in the first month of 2016. The smaller-than-expected increase could add to growing worries about a weakening US economy and even the possibility of recession. Yet the January jobs report also offered some good news to suggest the labor market remains healthy enough to keep the economy moving. The unemployment rate, for example, fell a tick to 4.9% the lowest reading in eight years. In another sign of a robust labor market, the average wage paid to workers jumped 0.5% in January to $25.39 an hour.
Meanwhile, the nation’s trade deficit rose 2.7% in December as exports fell again, capping the first year since 2009 in which US exports have declined. The US trade gap increased to a seasonally adjusted $43.4 billion from $42.2 billion in November. US exports dipped 0.3% to $181.5 billion. They fell 4.8% in 2015 to mark the largest decline since the final year of the Great Recession. Exports have tumbled because of a weak global economy and a strong dollar that’s made American-supplied goods and services more expensive. The worsened trade picture contributed to slower US economic growth in the second half of 2015. Imports rose 0.3% to $224.9 billion in December. They decreased 3.1% in 2015, largely reflecting lower costs of imported oil. For the full year, the US trade deficit climbed 4.6% to $531.5 billion compared with 2014.
The Dow Jones Industrial Average lost 211.61 points or 1.29 percent to 16,204.97, the Nasdaq was down 146.42 points or 3.25 percent to 4,363.14 while the S&P 500 dropped 35.40 points or 1.85 percent to 1,880.05.
The Indian ADRs closed mostly in red; HDFC Bank was down 0.71%, Infosys was down by 0.49%, Wipro was down 0.22% and Tata Motors was down 0.07%. On the other hand, Dr. Reddy’s Lab was up 0.30%.
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