The Dow Jones Industrial Average and the other major indexes kept tumbling right into the close as sellers were relentless Friday afternoon. The negative action on the stock market today came in the wake of a robust December job growth number, boosting fears of stubborn inflation and hesitance on the part of the Federal Reserve to cut rates.
The Dow Jones index boosted losses to 1.6%, or just under 700 points, and fell even further below its 50-day moving average. The S&P 500 lost 1.5%, also entrenching well below its 50-day line as well as under a Jan. 2 low.
The Nasdaq composite didn't finish near its bottom, but ended the day down to 1.6%, undercutting its 50-day line Friday. It also dipped below a Jan. 2 low. Small caps on the Russell 2000 took the worst of it as that index plunged 2.2%.
Fueling the sell-off was a report from the U.S. Labor Department that said the economy added 256,000 jobs in December, well ahead of the Econoday consensus estimate of 157,000. The unemployment rate unexpectedly ticked lower and wages were a little softer than expected.
Investors worry the jobs report indicates inflation is taking its time in getting down to the Fed's target of 2%. As a result, the 10-year Treasury yield spiked again, touching 4.79% early in the session, the highest level in more than a year. It ended the day at 4.76%, adding eight basis points.
Volume rose on the New York Stock Exchange and fell on the Nasdaq vs. the same time Wednesday. Decliners topped advancers by more than 4-to-1 on the NYSE and more than 3-to-1 on the Nasdaq.
Meanwhile, bitcoin climbed more than 3% to the $94,700 level.
Taiwan Semi Gains Despite Market
In the chip space, Taiwan Semiconductor bucked the trend among other stocks. The chipmaking giant initially gave back ground. But it ended trading up 0.6% after reporting a 57.8% jump in December revenue in local currency.
The world's largest chip foundry, which counts Dow Jones components Apple and Nvidia as large customers, also said preliminary fourth-quarter revenue was $26.36 billion, just a tad ahead of the FactSet estimates for $26.3 billion. Fourth-quarter earnings are due next week, with results due Thursday before the open.
Elsewhere, Aircraft leasing firm FTAI Aviation initially broke out of a cup base with a 177.18 entry. But though it climbed more than 3% and posted its seventh straight gain, it retreated back below the buy zone with Friday's market pullback.
3:21 p.m. ET
Stock Market Today: Delta Lifts Airline Stocks
Delta Air Lines soared in heavy volume after the company beat fourth-quarter adjusted earnings and sales estimates. The airline stock hit an all-time high on the stock market today.
Shares bounced off the 10-week moving average after falling below it last week. Delta stock is above the profit zone of a cup-with-handle base with a 52.45 buy point.
Delta rival United Airlines, a stock on Investor's Business Daily's SwingTrader list, surged in sympathy and also reached a record high.
In similar action, American Airlines jumped more than 4% and hit a level not seen since July 2023. Shares are in the profit zone from a cup-with-handle base with a 14.66 buy point.
2:17 p.m. ET
Insurance Stock Plunges On Wildfire Exposure
Insurance provider Mercury General plummeted in enormous volume on top of Wednesday's 6.5% drop. The stock felt the heat from the California wildfires with its heavy exposure to homes in the state as losses mount.
Shares fell further below the company's long-term 200-day moving average. The insurance stock already sliced through its 10-week line in heavy volume, creating a sell signal in mid-December.
Bucking the trend was IBD 50 name Globus Medical, as it nearly broke out of a flat base with an 87.22 buy point, according to MarketSurge pattern recognition. Its relative strength line reached a 52-week high as seen by the blue dot on its chart. Read the daily Big Picture column to stay in tune with IBD's recommended market exposure.
The medical device maker reported preliminary fourth-quarter sales numbers and 2025 revenue and earnings guidance late Wednesday. The company makes medical implants for spine surgeries for patients with musculoskeletal disorders.
12:04 p.m. ET
Top Stocks Break The 50-Day
Several top performers flashed sell signals with sharp breaks of their 50-day moving averages, including Netflix, ServiceNow, Shopify, Jefferies and Block.
In the Nasdaq 100, Constellation Energy was one of the few bright spots, up sharply, on news it's acquiring privately held Calpine for $16.4 billion. The deal combines two of the largest electricity generators in the U.S. as data centers proliferate around the country. Constellation is the largest producer of nuclear power in the U.S. while Calpine produces energy from natural gas and geothermal sources.
Despite the stock market downdraft, the MarketSurge Growth 250 delivered some solid gainers. Aris Water Solutions gapped above several moving averages as it tries to form a new base. The company provides water handling and recycling services to the oil and gas industry.
Archrock, a provider of natural gas compression services, rallied nearly 3% in strong turnover as it holds support at its 10-week moving average.
Intapp, a provider of software to the financial industry, continues to act like a leader. Shares jumped more than 5% in strong volume. Intapp is finding support at its 10-week line. Normally, that would be an alternate buy zone. But with the stock market under increasing selling pressure, new buys should be handled with care.
10:41 a.m. ET
Stock Market Today: Other Insurance Names Fall
Major stock indexes were down sharply in the stock market today after the December employment report came in stronger than expected. Insurer Travelers lagged badly on the Dow Jones index, while early gains faded for Tesla after the company launched a new Model Y in China.
Property and casualty insurers were weak across the board in the stock market today as losses mount from raging wildfires in the Los Angeles area. The fires could end up being the costliest blaze in history with losses exceeding $20 billion, according to JPMorgan. Allstate also fell sharply.
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Dow Jones stock Home Depot held up relatively well as Wall Street looked ahead to rebuilding efforts in L.A.
After a 6% plunge Tuesday in higher volume, Nvidia extended losses and is now firmly below its 50-day moving average. Late Wednesday, Bloomberg reported that the Biden administration will impose additional curbs on selling artificial intelligence and other advanced chips to Southeast Asia and Persian Gulf states.
Follow Ken Shreve on X @IBD_KShreve for more stock market analysis and insight. Also follow Kimberley Koenig for more stock market news on X/Twitter @IBD_KKoenig.
