Fears of recession and the uncertainty of the Fed raising interest rates, amid new U.S. employment data, drove stocks lower on Friday.
The unemployment rate came in at 4.9 percent down from 5.0 percent, while wages rose 0.5 percent. The U.S. economy added 151,000 jobs in January, according to the Bureau of Labor Statistics. Economists, however, were expecting a gain of 190,000.
Despite a disappointing jobs report, a lower unemployment rate has led the Street to believe that more rate increases are still in play. This comes after the Federal Open Market Committee held the line in January. A number of economists responding to a CNBC Fed Survey said they saw the next rate hike in May, rather than March.
That may, however, no longer be the case as investors consider more rates will be factored in sooner than later.