Stocks moved in both directions at the opening bell on Friday, ending a nine-strong streak of weekly gains as investors digested further strong jobs data that will impact expectations for interest rate cuts.
The Dow Jones Industrial Average (^DJI) fell 0.1%, or about 40 points. The benchmark S&P 500 (^GSPC) climbed just above zero, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.1%.
Major indexes split after the release of the US jobs report for December, which showed the US economy added 216,000 jobs in December, more than the 175,000 expected by economists. The unemployment rate remained unchanged at 3.7%.
Stock prices have slumped in the first week of 2024, marking a sharp reversal from a stormy rally driven by high hopes that the Federal Reserve will soon begin easing monetary policy. But doubts have arisen over whether policymakers are ready for a U-turn and traders have trimmed their bets on a rate cut in March.
After Friday's payroll report release, investors' bets on a rate cut by the Fed's March meeting were at about 50-50, according to data from CME Group, a significant decline from the previous month.
Read more: What the Fed's pause on rate hikes means for bank accounts, CDs, loans and credit cards
Against this backdrop, U.S. bond yields continued to rise, with the 10-year Treasury yield (^TNX) rising 3.7 basis points to 4.04% after rising sharply on Thursday.
Elsewhere, iPhone maker Foxconn (2354.TW) said it expects first-quarter sales to fall due to weaker market demand. Shares of Apple (AAPL) fell in premarket trading, adding to losses after two analysts downgraded the iPhone maker on concerns about sales of its next smartphone.
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Fri, January 5, 2024 at 2:40 p.m. GMTStocks rise after a strong jobs report surprises Wall Street
Stocks opened slightly higher on Friday as investors looked for direction after a strong jobs report shook expectations of a rate cut by the Federal Reserve.
The surprisingly hot jobs report could put pressure on the Fed to keep interest rates steady and delay its first rate cut, dashing hopes that the tightening campaign is over.
The Dow Jones Industrial Average (^DJI) rose just above the zero line. The benchmark S&P 500 (^GSPC) climbed 0.3%, while the tech-heavy Nasdaq Composite (^IXIC) rose 0.2%.
Fri, January 5, 2024 at 1:45 p.m. GMTThe US economy added 216,000 jobs in December, causing stock prices to fall
According to the Bureau of Labor Statistics, the U.S. economy added 216,000 jobs in December while the unemployment rate remained unchanged at 3.7%.
Yahoo Finance's Josh Schafer has all the details here.
Following the report, stock prices fell as traders reduced their bets on a rate cut by the Federal Reserve. All three indices lost over 0.4% in premarket trading.
Fri, January 5, 2024 at 2:40 p.m. GMT
Fri, January 5, 2024 at 1:45 p.m. GMTClick here for a detailed analysis of the latest stock market news and events affecting stock prices.
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