Major US stock indexes fell on Friday following the monthly jobs report and a significant drop in consumer sentiment. The Dow Jones Industrial Average and the S&P 500 both lost 1%, while the Nasdaq Composite dropped 1.4%. This negative trend continued throughout the week, with the Dow and Nasdaq both down 0.5% and the S&P 500 falling 0.2%.
The Labor Department’s employment report showed weaker-than-expected job growth in January, while the unemployment rate unexpectedly fell to 4.0%. This monthly jobs report is a key indicator for the Federal Reserve’s interest rate decisions, making it crucial for investors analysing the Dow Jones today.
Stocks initially rose slightly after the jobs data. However, a subsequent report showing a sharp decline in consumer sentiment this month triggered a sell-off, pushing major indexes into the red. This impacted investor confidence and contributed to the overall negative trend in the Dow Jones market today.
The yield on 10-year Treasury bonds, a key indicator of market expectations for the economy and interest rates, climbed to 4.5% from 4.44% before the jobs data. However, this remained well below rates of around 4.60% seen earlier in the week, reflecting the complex interplay of factors influencing the Dow Jones market today.
Amazon shares fell 4% after the company issued a disappointing sales outlook, despite beating fourth-quarter earnings expectations. This news rippled through other major tech stocks, impacting the broader market. Alphabet, Tesla, and Broadcom all fell roughly 3%, while Apple and Microsoft dropped 2% and 1%, respectively. Nvidia and Meta Platforms bucked the trend, posting slight gains.
Several companies saw significant share price movements following their quarterly results. Pinterest, Affirm Holdings, Doximity, Expedia, Cloudflare, and Take-Two Interactive all jumped more than 10%. Conversely, Bill Holdings and e.l.f. Beauty plunged 35% and 20%, respectively. These individual company performances contributed to the volatility seen in the Dow Jones market today.
Bitcoin fell below $96,000 after briefly topping $100,000 earlier in the day. Gold futures hit a record high of over $2,910 before settling around $2,890. WTI crude oil futures edged up 0.5%. These fluctuations in various asset classes reflect broader market sentiment and its impact on the Dow Jones market.