US stocks pulled back on Friday as investors digested a final 2024 jobs report that blew past expectations on hiring, raising more uncertainty in regards to the path of rates of interest this 12 months.
The Dow Jones Industrial Average (^DJI) slipped roughly 0.5%, while the S&P 500 (^GSPC) shed 0.6%. The tech-heavy Nasdaq Composite (^IXIC) fell 0.9%, leading declines as the main gauges arrange for weekly losses.
The December nonfarm-payrolls report showed a really healthy labor market: The US economy added over 250,000 jobs within the month, while the unemployment rate fell to 4.1%. That is the excellent news. The bad news: The strong reading could prompt the Fed to nudge rates higher, some on Wall Street imagine.
The ten-year Treasury yield (^TNX) continued a recent uptick on Friday, moving closer to 4.8% and at its highest levels since late 2023.
In recent days, Fed Chair Jerome Powell and other officials have made it clear they’re slowing down on lowering rates. Amid that tone and after the roles showing, markets are pricing in no easing before July, per the CME FedWatch Tool.
As of 9:49:01 AM EST. Market Open.
^DJI ^IXIC ^GSPC
Meanwhile, investors welcomed a clutch of upbeat earnings. Walgreens (WBA) posted a primary quarter profit beat, an indication the healthcare company’s turnaround efforts are paying off. Shares rose over 20% in morning trading.
Delta (DAL) stock jumped greater than 9% after a record 12 months for travel fueled a fourth quarter profit beat and record annual revenue for the airline.
But Nvidia (NVDA) shares got here under pressure in the sunshine of latest chip export curbs expected to be announced by the White House soon. The AI chip leader criticized President Biden for the eleventh hour rule changes, which is alleged were aimed toward undercutting the incoming Trump administration.
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