Stock Market Today: Wall Street Stays Steady After Mixed Jobs Data/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks remained stable Friday after a mixed jobs report showed slower hiring but stronger wage growth. The S&P 500 edged up 0.1%, while the Dow dipped slightly, and the Nasdaq rose 0.3%. Treasury yields climbed as investors speculated on future Federal Reserve rate cuts, though analysts believe the data won’t significantly alter Fed policy. Meanwhile, Amazon shares fell despite strong earnings, while Expedia and Take-Two Interactive saw double-digit gains.
Stock Market Today: Key Takeaways
- S&P 500 Up Slightly: +0.1%, still on track for a weekly gain.
- Dow Dips: -14 points (-0.1%), reflecting market caution.
- Nasdaq Rises: +0.3%, fueled by tech sector momentum.
- Treasury Yields Climb: 10-year yield hits 4.47%, up from 4.44%.
- Jobs Report Mixed: Hiring slowed, but wage growth exceeded expectations.
- Fed Rate Cuts in Focus: Analysts believe the report won’t sway the Fed’s cautious stance.
- Stock Movers:
- Amazon (-2.2%) fell despite strong earnings.
- Expedia (+13.8%) and Take-Two (+10.9%) surged on solid profits.
- Global Markets Mixed: Europe and Asia showed varied performances.
Stock Market Today: Wall Street Stays Steady After Mixed Jobs Data
Deep Look: Wall Street Reacts to Mixed Jobs Report
The U.S. stock market remained steady Friday, digesting a mixed jobs report that revealed slower hiring but higher wage growth. Investors balanced the implications for Federal Reserve policy, inflation, and economic growth, with most analysts predicting the data won’t significantly shift the Fed’s rate cut plans.
Stocks Hold Gains, Bonds See Stronger Reaction
- The S&P 500 rose 0.1%, keeping its weekly upward momentum intact.
- The Dow Jones dipped 14 points, reflecting investor caution.
- The Nasdaq climbed 0.3%, buoyed by tech stocks.
However, the bond market reacted more strongly, with the 10-year Treasury yield rising to 4.47% from 4.44% following the jobs report.
Jobs Report: Slower Hiring, But Stronger Wages
The Labor Department’s latest report showed that U.S. employers added fewer jobs than expected in January, with hiring at less than half December’s pace.
However, the report wasn’t entirely negative:
- Unemployment ticked lower, signaling resilience.
- Wages rose faster than expected, which could impact inflation.
Lindsay Rosner, head of fixed income at Goldman Sachs Asset Management, noted that one-off events—like California’s wildfires—may have distorted the numbers, making it unlikely that the Fed will change its stance based on this data alone.
What This Means for Fed Rate Cuts
The Federal Reserve has already begun cutting interest rates, with its first reduction in September 2024. However, policymakers warned that fewer cuts may come in 2025 than previously expected due to stubborn inflation.
- Wall Street had hoped for a “goldilocks” jobs report—neither too strong (which could fuel inflation) nor too weak (which could signal economic trouble).
- Scott Wren, senior global strategist at Wells Fargo, expects just one rate cut in 2025, despite some traders betting on two or even zero cuts.
Market Uncertainty: Tariffs & Global Trade Tensions
Beyond interest rates, investors remain wary of global trade tensions, particularly after President Donald Trump’s latest tariff moves.
- Trump recently delayed tariffs on Mexico and Canada for 30 days, easing some concerns about an immediate trade war.
- However, analysts warn that Europe may be next, adding uncertainty for global markets.
Bank of America economists noted that while the final outcome could be manageable, uncertainty itself can weigh on global investment.
Earnings in Focus: Amazon Drops, Expedia & Take-Two Surge
With major companies reporting fourth-quarter earnings, stocks reacted to profit results:
Amazon (-2.2%)
- Posted strong earnings, but shares fell due to a weaker-than-expected revenue forecast.
Expedia (+13.8%)
- Surged after reporting better-than-expected profits, showing resilience in the travel sector.
Take-Two Interactive (+10.9%)
- Video game maker beat expectations, boosting investor confidence.
Global Markets: Mixed Performance in Europe & Asia
- European stocks showed a mixed performance, with traders weighing Fed policy and trade concerns.
- Asian markets were also mixed, reflecting global uncertainty about inflation, interest rates, and trade tensions.
What’s Next?
As Wall Street wraps up a winning week, investors remain focused on the Fed’s next move, global trade tensions, and ongoing corporate earnings reports.
Key Questions for the Market:
- Will the Fed cut rates once, twice, or not at all in 2025?
- How will global trade tensions affect corporate profits?
- Can tech stocks continue to lead market gains?
For now, the market’s steady performance suggests cautious optimism, but uncertainty remains high.
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