Equities Retreat After Jobs Report, Consumer Sentiment Survey; Amazon Falls

Equities took a hit on Friday as investors digested the latest jobs report and consumer sentiment survey, with Amazon leading the decline. The S&P 500 fell 1.8%, while the tech-heavy Nasdaq dropped 2.4%. Amazon shares tumbled 4.6% after the e-commerce giant reported a slowdown in sales growth during the crucial holiday quarter.



The December jobs report showed a stronger-than-expected increase in jobs, with the economy adding 256,000 positions. However, wage growth eased, coming in at 3.5% year-over-year, below the 4% threshold that could spark inflation concerns. The market's negative reaction to the report suggests that investors are worried about a resurgence in inflation and uncertainty about the Federal Reserve's future policy actions.

The University of Michigan's consumer sentiment survey also painted a gloomy picture, with sentiment falling to its lowest level since October 2016. Consumers expressed concerns about inflation, interest rates, and the overall economic outlook. This pessimism is likely to weigh on consumer spending, which accounts for about two-thirds of US economic activity.

Amazon's disappointing sales growth during the holiday quarter was another factor driving the market's decline. The company reported a 7% increase in sales, down from 10% growth in the previous quarter. Amazon's stock has been volatile in recent months, with investors grappling with concerns about the company's slowing growth and increased competition in the e-commerce space.



As an investor, it's essential to stay informed about the latest economic data and market trends. The recent jobs report and consumer sentiment survey suggest that the economy may be slowing, which could impact corporate earnings and stock prices. However, it's crucial to maintain a balanced perspective and consider the potential for a rebound in the economy and the stock market.

In conclusion, the recent retreat in equities, led by Amazon's stock plunge, reflects investors' concerns about inflation, monetary policy uncertainty, and slowing economic growth. As an investor, it's essential to stay informed about the latest economic data and market trends, while maintaining a balanced perspective and considering the potential for a rebound in the economy and the stock market.