Stock market today: Dow, S&P 500, Nasdaq sink as jobs report blows past expectations

US stocks pulled back on Friday as investors digested a final 2024 jobs report that blew past expectations on hiring, raising more uncertainty about the path of interest rates this year.

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 major gauges set up for weekly losses.

The December nonfarm-payrolls report showed a very healthy labor market: The US economy added over 250,000 jobs in the month, while the unemployment rate fell to 4.1%. That’s the good news. The bad news: The strong reading could prompt the Fed to nudge rates higher, some on Wall Street believe.

The 10-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 jobs showing, markets are pricing in no easing before July, per the CME FedWatch Tool.

DJI – Free Realtime Quote USD

42,052.96 – (-1.37%)

As of 10:06:33 AM EST. Market Open.

^DJI ^IXIC ^GSPC

Meanwhile, investors welcomed a clutch of upbeat earnings. Walgreens (WBA) posted a first quarter profit beat, a sign the healthcare company’s turnaround efforts are paying off. Shares rose over 20% in morning trading.

Delta (DAL) stock jumped more than 9% after a record year for travel fueled a fourth quarter profit beat and record annual revenue for the airline.

But Nvidia (NVDA) shares came under pressure in the light of new chip export curbs expected to be announced by the White House soon. The AI chip leader criticized President Biden for the 11th hour rule changes, which is said were aimed at undercutting the incoming Trump administration.

LIVE 4 updates

Venu Sports is no longer

Venu Sports, the planned sports streaming service from Disney’s ESPN (DIS), Warner Bros. Discovery (WBD), and Fox (FOXA), will no longer make a debut.

“After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service,” the three companies said in a joint statement on Friday.

“In an ever-changing marketplace, we determined that it was best to meet the evolving demands of sports fans by focusing on existing products and distribution channels.”

The move caps off a wild week for Venu, after FuboTV (FUBO) settled all litigation related to the debut earlier this week. The news and sports streamer had filed an antitrust lawsuit against the platform’s launch last year.

The settlement coincided with an announcement that Fubo, an internet TV bundler, would join forces with Disney’s Hulu + Live TV business. Separately, Disney will roll out an ESPN flagship streaming service service this fall.

Fubo stock popped around 10% in early trading on Friday after surging 250% Monday on the heels of the Disney deal announcement. Fox and WBD shares fell on the news. Disney’s stock traded flat.
Stocks sink as hot jobs report slashes hopes of a rate cut

The “higher for longer” narrative just got a dose of strength on Friday.

The nonfarm-payrolls report showed a very healthy labor market: The US economy added over 250,000 jobs in December, while the unemployment rate fell to 4.1%. On its face, that’s good news. But the fresh data also fed into a dilemma for Wall Street: A strong reading could prompt the Fed to nudge rates higher.

US stocks pulled back at the open as investors digested the final 2024 jobs report, which blew past expectations on hiring, raising more uncertainty when the next rate cut will come.

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 major gauges set up for weekly losses.
US labor market finishes 2024 on a high note

The US economy added 256,000 jobs in December, the most in nine months and almost 100,000 more than Wall Street had expected as the labor market finished 2024 on a surprising high note.

In December, the unemployment rate also fell to 4.1% from 4.2%. Revisions showed the unemployment rate never reached the high of 4.3% reported initially in November.

Friday’s report saw Treasury yields rise as investors continue to push back expectations for Fed rate cuts in 2025, with no cuts expected now before June. Stock futures turned lower following the report.
Good morning. Here’s what’s happening today.

It’s jobs day.

Earnings: Constellation Brands (STZ), Delta (DAL), Tilray (TLRY), Walgreens Boots Alliance (WBA)

Economic news: Nonfarm payrolls report, unemployment rate (December)

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