US stock futures pulled back on Friday as cautious investors digested a final 2024 jobs report that blew past expectations on hiring, raising more uncertainty about the path of interest rates this year.
Dow Jones Industrial Average futures (YM=F) were down roughly 0.7%, while S&P 500 futures (ES=F) shed 0.8%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) fell almost 1%, leading declines as the major gauges set up weekly losses.
The December nonfarm-payrolls report showed a very healthy labor market: The US economy added over 250,000 jobs in December, while the unemployment rate fell to 4.1%. That’s the good news. The bad news: That fed into a dilemma for some on Wall Street, which is that the strong reading could prompt the Fed to nudge rates higher.
The 10-year Treasury yield (^TNX) continued a recent uptick Friday, nudging closer to 4.8%, at its highest levels since late 2023.
In recent days, Fed Chair Jerome Powell and other officials have made it clear they’re slowing down on lowering rates. Amid that tone and after the jobs showing, markets are pricing in no easing before July, per the CME FedWatch Tool.
At close: January 8 at 4:43:30 PM EST
^DJI ^IXIC ^GSPC
Meanwhile, investors welcomed a clutch of upbeat earnings. Walgreens (WBA) posted a first quarter profit beat, a sign the healthcare company’s turnaround efforts are paying off. Shares rose over 11% in pre-market trading.
Delta (DAL) stock jumped nearly 8% after a record year for travel fueled a fourth quarter profit beat and record annual revenue for the airline.
But Nvidia (NVDA) shares came under pressure ahead of new chip export curbs expected to be announced by the White House soon. The AI chip leader criticized President Biden for the 11th hour rule changes, which is said were aimed at undercutting the incoming Trump administration.
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