Market Recap: Stocks Slip on Jobs Report and Inflation Concerns
Major Indexes Retreat Amid Economic Data and Tariff Worries
On Friday, February 7, 2025, U.S. stock markets closed lower as investors digested a mixed jobs report and concerns over potential new tariffs. The major indexes retreated, ending a volatile week marked by significant corporate earnings and economic data releases.
The Dow Jones Industrial Average (DJI) fell 410.75 points, or 0.92%, to close at 44,336.88. The S&P 500 (^GSPC) dropped 56.09 points, or 0.92%, finishing at 6,027.48. The tech-heavy Nasdaq Composite (^IXIC) experienced the largest decline, shedding 283.49 points, or 1.43%, to end at 19,508.50.
Jobs Report Sparks Mixed Reactions
The Department of Labor reported that the U.S. economy added 143,000 jobs in January, slightly below the forecast. However, the unemployment rate unexpectedly eased to 4%, and wage growth remained strong. This mixed data left investors uncertain about the Federal Reserve’s next moves regarding interest rates.
Initial jobless claims for the week ended February 1 increased by 11,000 to 219,000, higher than the consensus estimate of 214,000. Continuing claims rose by 36,000 to 1.886 million for the week ended January 25.
Tariff Concerns Weigh on Market Sentiment
Market sentiment took a hit following reports that President Trump was planning to announce a new round of tariffs as early as Friday. This news added to existing worries about global trade tensions and their potential impact on economic growth.
Major Stock Movements and Corporate News
Amazon (AMZN) shares fell 3.39% to $230.74 after the e-commerce giant provided lower-than-expected guidance and announced plans for significant AI-related capital spending.
Doximity (DOCS) was the day’s top gainer, surging 35.19% to $78.76, while BILL Holdings (BILL) was the biggest loser, plummeting 33.46% to $64.11.
Affirm Holdings (AFRM) saw a significant uptick, rising 21.28% to $74.89, as investors reacted positively to the company’s latest financial results.
Nvidia (NVDA), a bellwether for the AI chip market, saw its stock price dip slightly by 0.35% to $128.24, as the tech sector faced broader pressures.
Upcoming Market Events
Investors are looking ahead to several key events that could impact market movements in the coming week:
1. Consumer Price Index (CPI) report: Expected to provide insights into inflation trends.
2. Producer Price Index (PPI) data: Will offer a view of inflation at the wholesale level.
3. Earnings releases: Major companies including Coca-Cola (KO), Albemarle (ALB), and CVS Health (CVS) are set to report their financial results.
Treasury Yields and Commodities
The mixed jobs report led to a slight increase in Treasury yields. The benchmark 10-year Treasury yield rose to 4.49%, up from Thursday’s close of 4.437%.
In the commodities market, gold futures reached a new all-time high of $2,906.50 per troy ounce, reflecting ongoing economic uncertainties. Crude oil prices also edged higher, with the most active futures contract rising 0.78% to $71.16 per barrel.
Global Market Perspective
Asian markets showed strength, with Chinese tech stocks entering a new bull market in Hong Kong. Companies like Lenovo and Xiaomi posted significant gains, while Alibaba shares also rose.
Looking Ahead
As we move forward, market participants will be closely monitoring developments in trade negotiations, central bank policies, and corporate earnings. The interplay between economic data, policy decisions, and geopolitical events will continue to shape market dynamics in the coming weeks.
Investors are advised to stay informed about these key factors and maintain a diversified portfolio to navigate the current market environment effectively.
