Dow Tumbles Nearly 700 Points Friday as Strong Jobs Report Casts Doubt Over Fed’s Rate-Cut Path
Stocks plunged on Friday after a hot jobs report dampened Wall Street’s expectations for more interest rate cuts from the Federal Reserve this year.
The Dow Jones Industrial Average traded nearly 700 points lower, or 1.6%. The S&P 500 shed about 1.5%, while the Nasdaq Composite lost 1.6%. Friday’s losses pushed the major benchmarks into the red for 2025.
U.S. payrolls grew by 256,000 in December, while economists polled by Dow Jones expected to see an increase of 155,000. The unemployment rate, which was projected to remain at 4.2%, fell to 4.1% during the month. The yield on the 10-year Treasury note spiked to its highest level since late 2023 after the report.
“Good news for the economy but not for the markets, at least for now,” said Wells Fargo Investment Institute senior global market strategist Scott Wren. “However, this unexpected gain relative to the consensus projection does not change our view that the labor market is likely to decelerate further in coming quarters.”
Source : CNBC
