U.S. Stocks Retreat After Torrid Run; Bonds Rise: Markets Wrap

(Bloomberg) -- U.S. equities limped into the weekend as renewed concern the coronavirus will slow global growth overshadowed fresh signs of a strong labor market. Treasuries jumped.

The S&P 500 Index halted a four-day rally, but still notched its best week since June. The latest jobs report showed hiring stayed robust last month, bolstering optimism growth can persist. But stocks remained lower after reports of further infections, an increase in deaths and more quarantines.

The Federal Reserve warned the outbreak posed a “new risk” to the economy. The fallout for companies is starting to come into focus, with corporations such as Toyota Motor Corp. and Honda Motor Co. temporarily halting operations in China. Apple Inc.’s iPhone maker Foxconn told employees not to return to work when China’s extended break ends Monday.

The 10-year Treasury yield slumped below 1.6% and crude lost its grip on $51 a barrel.

“The market moved up so quickly over the last few days and I think papered over the continued risk associated with the coronavirus,” said Robin Anderson, senior global economist at Principal Global Investors. “There’s still a lot of unknowns out there.”

Australia’s dollar dropped to its lowest level in a decade with the fallout from the coronavirus hurting riskier assets. Equities pushed lower across most of Asia as news of further infections on a cruise ship off Japan offered another reminder that cases remain on the rise. Singapore boosted its disease response to the second-highest level, the same one for the SARS epidemic. Confirmed cases worldwide now total 31,432, having risen more than 3,000 in one day, while the death toll reached 638.

Meanwhile, the presidents of China and the U.S. reaffirmed their commitment to the implementation of a phase-one trade deal in a phone call Friday.

And these are the main moves in markets:

Stocks

• The S&P 500 Index decreased 0.5% as of 4 p.m. New York time.
• The Nasdaq 100 fell 0.5%.
• The Stoxx Europe 600 Index declined 0.3%.
• The MSCI AC Asia Pacific Index fell 0.7%.

Currencies

• The Bloomberg Dollar Spot Index gained 0.2%.
• The British pound fell 0.3% to $1.2896.
• The euro fell 0.3% to $1.0946.
• The Japanese yen strengthened 0.2% to 109.77 per dollar.

Bonds

• The yield on 10-year Treasuries fell seven basis points to 1.57%.
• The two-year rate dropped to 1.4%
• Britain’s 10-year yield fell one basis point to 0.57%.
• Germany’s 10-year yield dipped two basis points to -0.39%.

Commodities

• West Texas Intermediate crude fell 1% to $50.42 a barrel.
• Gold futures added 0.3% to $1,574.20 an ounce.
• Copper fell 1.7% to $2.55 a pound.

--With assistance from Adam Haigh, Cormac Mullen, Constantine Courcoulas and Todd White.

To contact the reporters on this story: Claire Ballentine in New York at cballentine@bloomberg.net;Vildana Hajric in New York at vhajric1@bloomberg.net

To contact the editors responsible for this story: Sam Potter at spotter33@bloomberg.net, ;Jeremy Herron at jherron8@bloomberg.net, Brendan Walsh

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