• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Stock market today: S&P 500 falls as strong payrolls tee up prolonged Fed pause

by January 10, 2025
written by January 10, 2025

Investing.com– The S&P 500 fell sharply Friday, after a stronger-than-expected jobs report for December stoked fears of a prolonged Federal Reserve pause on rate cuts, sending Treasury yields sharply higher.

At 4:00 p.m. ET (21:00 GMT), Dow Jones Industrial Average fell 707 points, or 1.7%, S&P 500 dropped 1.6%, and NASDAQ Composite fell 1.6%.

Nonfarm payrolls surprises to upside, stoking fears of prolonged fed pause 

The US economy unexpectedly added more jobs in December versus the prior month, according to a monthly report that could factor into how the Federal Reserve approaches possible interest rate cuts.

Nonfarm payrolls increased by 256,000 jobs last month after rising by an downwardly revised 212,000 in November, the Labor Department’s Bureau of Labor Statistics said. Economists had forecast an uptick of 164,000 roles.

The unemployment rate fell to 4.1%, below November’s pace of 4.2%.

“If Fed officials were pushed to commit to a rate decision for the January and March meetings today, they would almost certainly be looking at keeping rates steady, Jefferies said in a Friday note.

Following the jobs report, the odds that the Fed keeps rates unchanged at its meeting later in January jumped to 98%, with the next cut now expected in June or July, according to Investing.com’s Fed Rate Monitor Tool.

Spike in Treasury yields blunt tech

Cooling bets on Fed rate cuts, pushed the yield on the 10-year Treasury to its highest level since November 2023, weighing on growth sectors of the market including tech. 

The 10-year Treasury yield climbed 8 bps to 4.765%, nearing the 5% level, which some warned could mark another blow to stocks. 

“If 10-year Treasury yields decisively breach 5% (the prior peak), then growth fears would soon resurface and trigger an equity de-rating,” MRB Partners said in a recent note.

Elsewhere, tech was hurt by a slump in chip stocks as NVIDIA Corporation (NASDAQ:NVDA) and Advanced Micro Devices Inc (NASDAQ:AMD) led the sector to downside, with latter coming under pressure after Goldman Sachs downgraded AMD to neutral from buy, citing revenue growth worries.

Q4 earnings season kicks off next week 

The fourth-quarter earnings season is set to begin in earnest next week, with several major banks, including JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS) and Citigroup (NYSE:C) set to report on Wednesday.

Elsewhere, Delta Air Lines (NYSE:DAL) stock soared over 9% after the carrier reported fourth-quarter earnings that surpassed analyst estimates, driven by strong travel demand. 

Walgreens Boots Alliance (NASDAQ:WBA) stock rose 27% after the pharmacy retailer reported first-quarter earnings and revenue above analyst expectations, and delivered an upbeat annual forecast.

(Peter Nurse, Ambar Warrick contributed to this article.)

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
American Airlines’ focus on ESG in 401(k) plan is illegal, US judge rules
next post
Russia stocks higher at close of trade; MOEX Russia Index up 1.77%

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

      June 26, 2025
    • Bumble shares jump 26% as dating company plans to axe 30% of workforce

      June 26, 2025
    • Small-business AI use is lagging, but one firm is channeling Sherlock Holmes and knocking out ‘grunt work’

      June 25, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (534)
    • Stock (6,426)

    Latest News

    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks
    • Women’s Tennis Association extends media rights deal with Tennis Channel through 2032

    Popular News

    • Lloyds downplays bank tax fears as profits hold steady
    • Trump taps former aide to work on Musk-led government efficiency plan

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy