US stocks ended lower to snap a two day rally on worries over Greece’s uncertain financial situation and a slowdown in China’s economic growth.
Also weighing the benchmark indexes down was weakness in energy shares on a sharp decline in oil prices.
Trading volumes were lower than usual following two days of gains on solid April US employment data. Only 5.6 billion shares exchanged hands-the fifth lowest volume this year.
The Dow Jones Industrial Average fell by 85.42 points or 0.5% at 1,105.7 points with about 24 of its 30 components trading lower. The blue chip index had earlier on Friday posted its biggest one day gain in more than three months on signs of resurgence in the US economy.
The S&P 500 Index ended 10.7 points or 0.51% lower on the day at 2105.33 points with all 10 of its major sectors ending lower on the day. The Energy sector led the losses with a 2% decline.
The technology heavy Nasdaq Composite ended the day 10 points or 0.2% lower at 4993.97.
“There’s a little malaise in the stock market after the reaction to the last jobs report and there’s no clear direction from the data,” Kevin Mahn, president of Parsippany, New Jersey-based Hennion & Walsh Asset Management Inc, told Bloomberg.
“The best way to characterize the market right now is trendless volatility.”
Frida’s nonfarm payrolls data showed that the economy is on a solid footing but analysts are still concerned that the economy may not be strong enough to cause the Federal Reserve to raise the country’s lending rates before summer.
“At the same time, earnings were not as dire as forecast and are likely to rebound later this year,” Jim Dunigan, market strategist at PNC Wealth Management, told Market Watch.
“Ultimately, an increase in Fed funds rate is a positive thing, even though we might have a market tantrum, because it means the economy is improving,” he added.
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