Wall Street closes lower as early rally fizzles

STORY: Wall Street closed out the week on a down note Friday, after early gains from a jobs report that showed the labor market may be starting to loosen gave way to worries about the European gas crisis.

The Dow and S&P 500 each finished down a percent, while the Nasdaq dropped 1.3%.

Tyler Ellegard, a portfolio manager at Gradient Investments, explained the reversal of fortunes for stocks.

"Well, this morning was pretty positive. I mean, we had a good jobs report, you know, 315,000 jobs were added. Unemployment ticked up to 3.7 from 3.5 (percent), which historically is still a very low unemployment rate... But then as we hear about 11:00 (AM), 12:00 PM Central Time here, we had reports of the Nord Stream 1 pipeline was supposed to be opened on Saturday after a three-day shutdown, but that is going to be delayed, unfortunately. They had some technical issues. So the extent of how long that shutdown is going to be at this point is a little bit unknown... And so having those issues in Europe persisting and the uncertainty around whether households or businesses are going to be able to operate, you know, is a bit concerning. And so that's really what you saw when you saw the sell-off in the markets up to this point."

Mega-cap tech stocks fell, with shares of Apple, Microsoft and Meta Platforms all losing ground.

Energy stocks rose as oil prices gained nearly 2% after Russia scrapped the deadline to resume Nord Stream 1 gas flows.

Also on the positive side were shares of Kohl's after Reuters exclusively reported, citing people familiar with the matter, that private equity firm Oak Street Real Estate Capital made an offer to acquire as much as $2 billion worth of property from the struggling retailer and have it lease back its stores.