US Market falls on profit booking

The US equity market finished session lower on Friday, 07 February 2020, as investors elected to book profit made in previous fourth sessions sending all three benchmark indexes at records following a stellar January jobs report that exceeded expectations. At closing bell, the Dow Jones Industrial Average fell 277.26 points, or 0.94%, to 29,102.51, while the S&P 500 index lost 18.07 points, or 0.54%, to 3,327.71. The Nasdaq Composite Index lost 51.64 points, or 0.54%, to 9,520.51. For the week, the Dow was up 3%, the S&P 500 index advanced 3.2%, and the Nasdaq gained 4%.

Worries about economic growth around the world that preoccupied investors in recent days appear to have eased as corporate earnings and employment data have beaten expectations. January's better-than-expected jobs report is well-timed in that it boosts economic confidence just when coronavirus fears had investors questioning the growth outlook. Meanwhile, China outlined plans to slash tariffs, helping boost sentiment among traders and investors.

Meanwhile, China's National Health Commission on Friday confirmed more than 31,000 cases of the deadly pneumonialike virus in the country, with more than 630 deaths. The disease also continues to spread outside the country. In Singapore, the government on Friday raised its alert level, citing three new cases of infected people who have no known links to previous cases or recent travel history to China.

ECONOMIC NEWS: The Labor Department said the U.S. economy added 225,000 jobs in January, beating expectations and putting the jobless rate at 3.6%. Wages increased 3.1% from a year earlier.

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