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Nonfarm payrolls increase by 143,000 in January

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Uber ( UBER ) jumps after Bill Ackman discloses stake

(Updates at the close)

By Abigail Summerville and Shashwat Chauhan

Feb 7 (Reuters) - All three U.S. stock indexes closed

lower on Friday after President Donald Trump's reciprocal tariff

announcement followed weak jobs and consumer sentiment data.

During a meeting with visiting Japanese Prime Minister

Shigeru Ishiba, Trump said he might impose reciprocal tariffs on

several countries next week. He did not identify which countries

would be hit.

"Today, the tone was set early with the payroll report

and very quickly people ignored that as soon as tariff

conversations started coming back in," said Mark Hackett, chief

market strategist at Nationwide.

Earlier in the day, a survey showed U.S. consumer sentiment

dropped unexpectedly in February to a seven-month low and

inflation expectations rocketed, with households seeing

inflation over the next year surging to 4.3% - the highest since

November 2023.

Another report showed U.S. job growth slowed more than

expected in January after robust gains in the prior two months,

although a 4% unemployment rate will likely give the Fed cover

to hold off cutting interest rates at least until June.

The final employment report under former President Joe

Biden's administration showed 598,000 fewer jobs were created in

the 12 months through last March than previously estimated. The

final payrolls benchmark revision, however, was less than the

reduction of 818,000 jobs estimated back in August.

The Cboe Volatility Index, known as Wall Street's

fear gauge, rose on Friday.

Traders of short-term interest-rate futures now expect the

Fed to cut interest rates just once this year, backing away from

earlier bets on two rate cuts starting in June.

The S&P 500 lost 57.63 points, or 0.95%, to end at

6,025.94 points, while the Nasdaq Composite lost 267.52

points, or 1.35%, to 19,524.47. The Dow Jones Industrial Average

fell 441.28 points, or 0.99%, to 44,306.35.

A majority of the 11 S&P 500 sectors traded lower, with

consumer discretionary leading losses with a roughly

2.5% fall.

Uber ( UBER ) jumped after billionaire hedge fund manager

Bill Ackman disclosed a large stake in the company.

Amazon.com ( AMZN ) dipped due to weakness in the retailer's

cloud computing unit, Amazon Web Services, and

lower-than-expected forecasts for first-quarter revenue and

profit.

Markets had a dismal start to the week when Trump announced

sweeping trade tariffs over the weekend, but suspended the

levies on goods from Mexico and Canada on Monday for a month. A

host of strong earnings in recent days offset the weak start.

Among other movers, Expedia ( EXPE ) rose after the online

travel platform posted better-than-expected fourth-quarter

results.

Elf Beauty ( ELF ) tumbled after the cosmetics company cut

its annual net sales and profit forecasts.

(Reporting by Abigail Summerville in New york, Shashwat Chauhan

and Sukriti Gupta in Bengaluru; Editing by Pooja Desai, Anil

D'Silva and Nia Williams)