US stock futures fell on Friday as cautious investors digested a final 2024 jobs report that smashed previous expectations on employment, raising more uncertainty about the path of interest rates this year.
Dow Jones Industrial Average futures (YM=F) fell approximately 0.7%, while S&P 500 futures (ES=F) fell 0.8%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) fell nearly 1%, leading to declines as major benchmarks posted weekly losses.
The December non-farm payrolls report showed a very healthy labor market: the US economy added more than 250,000 jobs in December, while the unemployment rate fell to 4.1%. This is the good news. The bad news: This created a dilemma for some on Wall Street: A strong reading could prompt the Fed to raise interest rates.
The 10-year Treasury yield (^TNX) extended its recent rise on Friday, approaching 4.8%, at its highest levels since late 2023.
In recent days, Federal Reserve Chairman Jerome Powell and other officials have made clear they are slowing down on cutting interest rates. Amid this tone and after the emergence of jobs, the markets do not witness any decline in pricing before July, According to CME FedWatch.
When Close: January 8 at 4:43:30 PM EST
^ DJI ^ IX ^ GSBC
Meanwhile, investors welcomed a set of upbeat earnings. Walgreens (WBA) reported a first-quarter earnings beat, a sign that the health care company’s turnaround efforts are paying off. Shares rose more than 11% in pre-market trading.
Delta (DAL) stock jumped nearly 8% after a record year for travel that led to fourth-quarter profits and record annual revenue for the airline.
But Nvidia (NVDA) shares have come under pressure ahead of new chip export restrictions the White House is expected to announce soon. The AI chip leader criticized President Biden over the eleventh-hour rule changes, which were said to be aimed at undermining the incoming Trump administration.
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