Stock market today: Dow, S&P 500, Nasdaq sink amid jobs report surprise, fresh inflation worries
Published On Jan 10, 2025, 4:03 PM
U.S. stocks dropped significantly after a surprisingly strong jobs report for December 2024, showing the economy adding over 256,000 jobs and pushing unemployment down to 4.1%. This robust data has led to increased speculation that the Federal Reserve may need to maintain higher interest rates for an extended period, quashing hopes of an imminent rate cut. The Dow fell approximately 1.6%, while the S&P 500 and Nasdaq both saw declines of about 1.5%. Rising consumer expectations for inflation have added to market unease, suggesting a period of uncertainty ahead for interest rate policy and stock performance.
Stock Forecasts
WBA
Positive
The strong jobs report increases the likelihood that the Fed will keep interest rates higher for longer, which could negatively impact growth stocks and sectors sensitive to borrowing costs, such as tech and consumer discretionary. Conversely, value sectors like healthcare may benefit from stable or rising rates due to their defensive characteristics and necessary demand.
DAL
Positive
The solid earnings report from Delta and expectations for ongoing travel recovery could support its share price, particularly as it navigates a robust demand environment post-pandemic.
XHB
Negative
The increase in interest rates and concerns around consumer spending could negatively affect companies tied to homebuilding and related industries, as higher borrowing costs deter potential homebuyers. This trend is reflected in the decline of the SPDR S&P Homebuilders ETF.
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