Stocks finished sharply lower Friday as investors tracked the ongoing selloff in global government bond markets stoked by a hotter-than-expected December jobs report.
The Dow Jones Industrial Average tumbled 696.75 points, or 1.63%, to finish the session at 41,938.45, while the S&P 500 fell 1.54% to close at 5,827.04 and the tech-heavy Nasdaq lost 1.63% to end the day at 19,161.63.
“Despite the blow-out report this morning, the 2024 average monthly gain in private payrolls of 149,000 was cooler than the 2023 average of 192,000,” said Jeffrey Roach, chief economist for LPL Financial.
“Investors should expect another step downward in 2025. In the meantime, the Fed will keep rates unchanged unless we see significant cooling in the job market,” he added.
Updated at 11:22 AM EST
Election gains gone
The S&P 500 is within around 40 points of sliding below its Election Day close as stocks tumble on the back of a hotter-than-expected jobs report and the ongoing surge in Treasury bond yields.
The benchmark is now just 0.7% higher from its Nov. 5 close, and was last marked 95 points, or 1.59% lower on the Friday session.
The market is now pricing in a single rate cut in all of 2025: a 25 bps move down to 4.00-4.25% by year end.https://t.co/l5IYmkeySJ pic.twitter.com/cHVfdrLcEE
— Charlie Bilello (@charliebilello) January 10, 2025
Updated at 9:40 AM EST
Red slump
The S&P 500 was marked 57 points, or 0.97% lower in the opening minutes of trading, while the Nasdaq fell 270 points, or 1.38%.
The Dow slumped 355 points while the mid-cap Russell 2000 tumbled 38 points, or 1.72%.
Benchmark 10-year Treasury note yields were last marked at 4.755% while 30-year bonds topped the 5% mark for the first time since October of 2023.
S&P 500 Opening Bell Heatmap (Jan 10, 2025)$SPY -0.80% 🟥$QQQ -0.97% 🟥$DJI -0.69% 🟥$IWM -1.82% 🟥 pic.twitter.com/F1y7JXlptQ
— Wall St Engine (@wallstengine) January 10, 2025
Updated at 9:13 AM EST
Not now, sport ...
Walt Disney (DIS) shares edged lower in premarket after the media and entertainment giant scrapped plans to form a joint-venture focused on sports streaming with Fox (FOXA) and Warner Bros. Discovery (WBD) .
The planned platform, known as Venu Sports, was formed last year in an effort to bundle broadcast rights from the NFL, the NBA and the FIFA World Cup.
"After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service," the trio state in a statement.
Disney shares were last marked 0.24% lower at $109.50, while Warner Bros. fell 1.8% and Fox was little-changed from last night's close.
⭕️ $FUBO 🟩🟩🟩🟩
— INTERCEPT⭕R ᴼˢᴵᴺᵀ/ ᴹᵃʳᵏᵉᵗˢ (@InterceptorNews) January 10, 2025
DISNEY $DIS, $FOX AND WARNER BROS. DISCOVERY $WBD CALL OFF PLANS TO LAUNCH VENU SPORTS STREAMING SERVICE - @CNBC @StockMKTNewz pic.twitter.com/2YbddX2ynt
Updated at 8:41 AM EST
Hot job market
The U.S. economy added a much larger-than-expected total of new hires last month, adding more upward pressure to wage inflation and likely stoking a further sell-off in U.S. Treasury bonds.
The Bureau of Labor Statistics said 256,000 new jobs were created last month, a tally that was well ahead Wall Street's 164,000 forecast and the downwardly-revised 212,000 reading from November.
U.S. stock futures extended earlier declines following the data release, with the S&P 500 now called 50 points lower and the Nasdaq priced for a 210 point decline and the Dow for a 320 point gain.
Benchmark 10-year Treasury note yields rose 10 basis points to 4.786% following the data release while rate-sensitive 2-year notes jumped 8 basis points to 4.379%.
NFP 3-Month Moving Average: (Chart form ECAN) pic.twitter.com/OUKZ7rNklm
— Michael McDonough (@M_McDonough) January 10, 2025
Updated at 8:20 AM EST
$80 crude in sight?
Global oil prices surged in early Friday trading on market reports of potential U.S. sanctions on the sale of Russian crude.
Reuters reported earlier this week that outgoing President Joe Biden could tighten restrictions on Russian exports, first imposed in February of 2023, as a way to shore-up support for Ukraine ahead of President-elect Donald Trump's Jan. 20 inauguration.
Brent crude futures contracts for March delivery, the global pricing benchmark, were last seen $2.70 higher on the session at $78.61 per barrel while U.S. WTI crude for February rose $2.63 to $76.55 per barrel.
WTI venturing closer to $80 pic.twitter.com/PY5jA7tplZ
— Mike Zaccardi, CFA, CMT 🍖 (@MikeZaccardi) January 10, 2025
Updated at 6:51 AM EST
Soaring profits
Delta Air Lines (DAL) shares powered higher after the carrier posted stronger-than-expected fourth earnings amid the record boom in domestic travel and forecast further profits into the coming year.
Delta said 2025 profits are likely to rise to $7.35 per share, a nearly 20% advance from 2024 levels, following December quarter earnings of $1.85 per share on revenues of $15.56 billion.
Delta shares were marked 4.85% higher in premarket trading to indicate an opening bell price of $64.45 each.
Delta Air Lines, $DAL. Q4 FY24 Results:
— EarningsTime (@Earnings_Time) January 10, 2025
🟢 +4.85% Pre-Market ($64.40)
📊 Adj EPS: $1.85 🟢
💰 Revenue: $15.56B 🟢
📈 Net Income: $843M
🔍 Record revenue with strong demand in premium and international markets. pic.twitter.com/Mdhbh8CZoA
Stock Market Today
Stocks have struggled to find upward momentum this week, and even with a modestly higher close on Wednesday, the S&P 500 is clinging to a January gain of just 0.25% heading into today's key labor market update and the start of the fourth quarter earnings season next week.
Much of the pullback seen in U.S. stocks, and indeed markets elsewhere, is tied to the selloff in global government bonds, which has taken U.K. gilt yields to the highest levels in more than a decade and benchmark 10-year Treasury note yields to levels since in April of last year.
Renewed inflation risks, massive government deficits and legacy debt levels, alongside concern that President-elect Donald Trump's economic agenda will add to all three, have been closely-linked to the rise in Treasury yields and the corresponding impact to U.S. stocks.
Benchmark 10-year Treasury notes were last marked at 4.694% heading into the start of the New York trading session, while 2-year notes were rose to 4.354% ahead of today's payroll report at 8:30 am Eastern time.
Economists expect to see that employers added 165,000 new jobs last month, a solid overall tally but slower than the 227,000 pace recorded over the month of November. The headline unemployment rate is likely to remain steady at 4.2% while hourly wage gains are forecast to moderate to around 0.3%.
Related: Skyrocketing bond yields deliver a big blow to stocks
Anything hotter than the Street's consensus forecast, particularly on the wage front, is likely to stoke yields higher and pull stocks deeper into the red over the final trading day of the week.
As it stands, futures contracts tied to the S&P 500 are priced for a 12 point opening while those linked to the Dow Jones Industrial Average are indicating a 40 point opening bell decline.
The tech-focused Nasdaq, which is down 0.05% for the month, is priced for a modest 60 point decline, with Nvidia (NVDA) , Tesla (TSLA) and Advanced Micro Devices (AMD) pulling the index lower with premarket declines.
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In overseas markets, Europe's Stoxx 600 index was marked 0.14% lower in Frankfurt, with benchmark 10-year German government bond yields rising to the highest levels since July.
In Britain, the FTSE 100 slipped 0.21% as the pound fell to a 14-month low of 1.2286 against the U.S. dollar and 10-year gilt yields eased to 4.845%, near the 2008 highs seen earlier this week.
Overnight in Asia, the region-wide MSCI ex-Japan benchmark fell 0.81% into the close of trading, thanks in part to another downward slump for stocks in China, while the Nikkei 225 closed 0.14% lower in Tokyo.
Related: Veteran fund manager issues dire S&P 500 warning for 2025
