US stocks finished a volatile session lower on Friday, as the chip stocks rally lost steam. Nvidia's shares fell by 5.4%, leading to declines in the S&P 500 and Nasdaq 100, which dipped by 0.6% and 1.5%, respectively, retreating from their new highs. The Dow Jones also lost 68 points, but a 1% rise in shares of Apple limited the losses of the blue-chip index, with the mega cap stock snapping its seven-day losing streak. Also, traders digested the latest jobs report which reinforced bets the Fed could start cutting interest rates in June. The February payroll figure came above forecasts but job gains in both January and December were revised sharply lower, the unemployment rate unexpectedly increased. Among stocks, Broadcom slid 7% as the company's full-year forecast failed to impress investors and the quarterly profit missed estimates. On the week, the S&P dipped 0.2% and the Nasdaq fell 1%. Meanwhile the Dow Jones lost 0.7% to book its worst week since October.
Frankfurt's DAX 40 index trimmed early losses to trade near the flat line at 17,850 on Friday afternoon, hovering around its highest level on record, following the release of US employment data that bolstered expectations that the Federal Reserve could begin cutting interest rates by the middle of this year. The country's jobless rate unexpectedly rose to a two-year high of 3.9% in February, and monthly wage growth slowed more than expected to 0.1%. Meanwhile, job gains exceeded expectations at 275K, but figures for January and December were sharply revised lower. In other economic news, German industrial output rose more than expected in January. The German benchmark index is poised to book a 0.6% weekly gain, marking its fifth consecutive week of gains, as both the ECB and Fed expressed increased confidence in potential interest rate cuts in the coming months amid a slowdown in inflation.
The FTSE MIB closed flat at the 33,400 mark on Friday, around levels not seen since 2008, after the US jobs report reinforced market expectations of a midyear Fed rate cut. Earlier indications from both the European Central Bank and the Federal Reserve suggested potential interest rate reductions soon. On the corporate front, Telecom Italia emerged as top performer, rising nearly 5% to recover partly from yesterday's 23% plunge. In addition, Amplifon and Iveco Group also had a strong session, gaining around 2.5% each. Conversely, Azimut was the biggest laggard, declining over 5%. Moreover, Unicredit (-1.9%) ended up in negative territory after announcing plans for a dividend distribution in 2024. Weekly, the FTSE was up by more than 1.5%.
The IBEX 35 closed below the flatline at 10,305 on Friday, halting the four day-rally that brought the index to over six-year highs, dragged by the energy companies. Acciona Energia (-3.9%), Solaria Energia (-3.4%), and Acciona (-2.7%) dropped the most affected by lower oil and gas prices. On the other hand, Grifols rebounded by 19.7% thanks to the publication of its audited 2023 results. Also, rate-sensitive Inmobiliaria (2.8%) and Merlin Properties (1.8%) advanced. Over the week, the index gained 2.4%, as risk sentiment improved after ECB and FED members remarks and US non-farm payrolls report strengthened bets of monetary easing this year.
