U.S. shares retreat as NFP triggers rate hike speculations

U.S. stocks retreated on midday trading on Friday, as strong labor market data raised speculations the fed would hike its borrowing cost sooner than envisaged.

The report showed that unemployment rate in the world’s biggest economy marked a 6-1/2-year low in February, as it came in at 5.5 percent.

Also, nonfarm payrolls recorded the generation of 295,000 jobs, beating median projections of 240,000, registering the longest run of 200,000-plus increases since 1994.

As investors feel the first interest rate hike is becoming closer they tend to sell equities while hold dollars.

Yesterday, U.S. shares took advantage of the ECB comments about its €1tn quantitative easing program, as the bank referred it may extend its bond purchases beyond September 2016, if required.

Standard & Poor's 500 dropped 0.64% to hover around 2,087.58, while the Dow Jones industrial average index subtracted 0.78% to 17,994.95. The NASDAQ composite index was down 0.42% to 4,961.90 points.

Following the record-high rally posted on Monday, it seems that U.S. shares are set for a weekly decline.