Last Updated: 4:02 PM EST
Stock indices finished today’s trading session in the red. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) fell 1.3%, 0.95%, and 0.99%, respectively. Earlier today, the U.S. economy showed signs of slowing down but is still growing at a healthy pace. The latest jobs report revealed that nonfarm payrolls increased by 143,000 in January, with unemployment falling to 4%.
While this growth is slower than in previous months, economists say it’s still strong enough to keep the economy on track. In fact, the labor market has been so resilient that it’s helped to drive consumer spending and keep the economy expanding.
However, rising inflation expectations are a concern. A University of Michigan survey showed that consumers expect prices to rise faster in the year ahead due in part to President Trump’s tariff policies. This has led some economists to predict that the Federal Reserve will keep interest rates on hold for the foreseeable future. The central bank has already cut interest rates by a full percentage point last year, and it may be waiting to see how the economy responds to those cuts before making any further moves.
Despite these concerns, the overall picture is one of a moderating but still strong labor market. Job growth is being driven by industries like healthcare, retail, and government, while wages are rising at a steady pace. The average hourly wage increased by 0.5% in January, and it is up 4.1% over the past year. The Fed is likely to keep a close eye on inflation expectations, but for now, it seems content to keep interest rates steady.
First Published: 4:00 AM EST
U.S. futures were muted on Friday morning as investors awaited the release of the closely-watched nonfarm payrolls report. This data point will provide insights into the strength of the labor market. Futures on the Nasdaq 100 (NDX), the Dow Jones Industrial Average (DJIA), and the S&P 500 (SPX) were down 0.10%, 0.05%, and 0.09%, respectively, at 4.00 a.m. EST, February 7.
The previous trading session saw a mixed performance, with the S&P 500 and the Nasdaq Composite gaining 0.4% and 0.5%, respectively, while the Dow Jones closed 0.3% lower. These market movements followed the release of key economic data and several corporate earnings reports.
After the market closed yesterday, Amazon (AMZN) stock declined 4.1% as the company provided weaker-than-expected revenue guidance for the first quarter. On the other hand, stocks of Pinterest (PINS), Cloudflare (NET), and Affirm (AFRM) gained 18.5%, 11.6%, and 15%, respectively, in the extended trading session on providing a solid 2025 outlook.
Looking ahead, investors are awaiting the release of the U.S. employment report and the unemployment rate for January. Currently, economists predict nonfarm payrolls will grow by 169,000, down from the 256,000 jobs added in December. Also, the unemployment rate is expected to stay at 4.1%. Further, economic reports, such as preliminary Consumer Sentiment for last month and Wholesale Inventories for December, will be made public today.
On the earnings front, companies such as Fortive (FTV), Kimco Realty (KIM), Telus (TU), and Newell Brands (NWL) are scheduled to release their quarterly numbers today.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 4.442% as of writing. Simultaneously, WTI crude oil futures are trending higher, hovering near $71.17 per barrel as of the last check.
Elsewhere, European indices opened mixed on Friday as investors digested a slew of earnings reports and a 25-basis point interest rate cut by the Bank of England. Also, traders looked forward to the important U.S. jobs report due today.
Asia-Pacific Markets Traded Mixed on Friday
Asia-Pacific indices were mixed today as investors assessed key economic reports from the region, including Japan’s household spending data.
Notably, the Hang Seng Index closed higher by 1.16%. Further, China’s Shanghai Composite and Shenzhen Component indices gained 1.01% and 1.75%, respectively. However, Japan’s Topix and Nikkei indices declined 0.54% and 0.72%, respectively.
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