S&P 500 erases 2025 gains on hot job growth, high yields
Surprisingly robust US job growth sank the stock market on Friday as traders trimmed bets on how much the Federal Reserve would cut its policy rate.
Thirty-year Treasury yields briefly touched 5% for the first time since Q4 2023, while the US dollar zoomed higher against every G10 currency save the Japanese yen.
The S&P 500 fell 1.5%, erasing its gains for the young year. The Russell 2000 was off 2.2%.
While strong job growth was bad for stocks, indications that the US Supreme Court is poised to uphold a ban of TikTok helped put a floor under the market. The Nasdaq 100 bottomed around midday as these reports hit the wires, ending 1.6% lower. Meta swung from a loss of 2% to a gain of as much as 3%. However, most members of the Magnificent 7 got pummeled, with Nvidia and Apple each off more than 2%.
Constellation Brands was the worst-performing S&P 500 stock after cutting its guidance.
Nearly every S&P 500 sector ETF was negative, with real estate, financials, and tech each falling more than 2%. Energy was the lone gainer as crude-oil prices ramped higher amid reports of additional sanctions looming on Russian crude.
Other standouts to the upside: Walgreens Boots Alliance topped the leaderboard on the heels of stronger earnings and revenues than any analyst expected, while Delta Air Lines’s quarterly report and profit outlook sent shares way up as well.
