Dow sheds nearly 300 points as market retreats from records

U.S. stocks closed lower Friday, a day after all three benchmark indexes finished at records, as some investors locked in recent stock gains following a stellar January jobs report that exceeded economists’ expectations.

Also on investors’ radar were efforts to contain the fast-moving coronavirus amid a busy week of quarterly earnings reports.

How did benchmarks fare?

The Dow Jones Industrial Average DJIA, -0.94% fell 277.26 points, or 0.9%, to end at 29,102.51, while the S&P 500 index SPX, -0.54% lost 18.07 points, or 0.5%, to finish at 3,327.71. The Nasdaq Composite Index COMP, -0.54% lost 51.64 points, or 0.5%, to close at 9,520.51.

Equity benchmarks still notched sizable weekly gains, with the Dow up 3% for the week, the S&P 500 index advancing 3.2%, and the Nasdaq gaining 4%.

What drove the market?

The U.S. economy added 225,000 jobs in January, well above the 165,000 jobs expected by economists polled by MarketWatch, while the unemployment rate ticked up slightly to 3.6% as the share of Americans in the labor force rose by 0.2 percentage point.

Read: How economists are interpreting a January jobs report that shows the U.S. added 225,000 jobs

Stocks marked their first day of losses after a week of aggressive gains that saw markets carve out all-time highs, driven by concerns over the outbreak of coronavirus.

“The largest-weighted stocks are not so economically sensitive,” said Diane Jaffee, a portfolio manager at TCW, about the pullback following the jobs report, which included a dip in shares of Apple Inc. AAPL, -1.36%. “While these $1 trillion club companies continue to do well, they’re not really aided or abetted by an economic cycle being positive.”

Average hourly wages rose 0.2% last month, the Labor Department said, versus expectations of a 0.3% rise. Year-over-year, earnings have gained 3.1%, down from a

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