US Stock Market: DJIA, S&P500, Nasdaq and Russell ended mixed on Friday
- The S&P 500 fell 6.75 points, or 0.2%, to 4,145.19
- The Dow Jones rose 76.65 points, or 0.2%, to 32,803.47
- The Nasdaq fell 63.03 points, or 0.5%, to 12,657.55
The benchmark S&P 500 finished 0.2% lower after rebounding from an early drop as investors responded to the news, which indicated that companies in the United States unexpectedly created hundreds of thousands more jobs than projected last month.
The surprising data reveals that the economy is not in a recession, as previously thought. However, it undermines investors' expectations that a weakening economy will result in a spike in inflation shortly. That means the Federal Reserve may not let up on its aggressive rate hikes to combat inflation as early as hoped. And much of Wall Street still revolves around expectations for rates.
Stocks of technology and other high-growth companies once again took the brunt of the selling amid the rising-rate worries. The tech-heavy Nasdaq composite cut its early losses and closed down 63.03 points, or 0.5%, at 12,657.55.
The good news on the jobs market helped to limit losses for the Dow Jones Industrial Average, whose stocks tend to move more with expectations for the overall economy. It added 76.65 points, or 0.2%, to close at 32,803.47.
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The S&P 500 slipped 6.75 points to end at 4,145.19. Both the S&P 500 and Nasdaq posted a gain for the week.
Wall Street's clearest moves came from the bond market, where Treasury yields shot higher immediately after the release of the jobs data. The two-year Treasury yield, which tends to track expectations for Fed action, jumped to 3.23% from 3.05% late Thursday. The 10-year yield, which influences rates on mortgages, rose to 2.84% from 2.69%.
Wall Street is coming off the best month for stocks since late 2020, a rally driven mostly by what had been falling yields across the bond market. The hope on Wall Street had been that the economy was slowing enough to get the Fed to ease up on its rate hikes.
Higher mortgage rates had cut into the housing industry, in particular, after the Fed raised its short-term rates four times this year. The last two increases were triple the usual size, and the Fed has raised its benchmark overnight rate from nearly zero by 2.25 percentage points.
On Friday, Warner Bros. Discovery fell 16.5% for the biggest loss in the S&P 500 after reporting weaker results for the latest quarter than analysts expected. Monster Beverage lost 5.2% after it reported weaker profit than expected, though its revenue was stronger than forecast.
Smaller company stocks also weathered the turbulent trading to notch gains. The Russell 2000 index rose 15.37 points, or 0.8%, to close at 1,921.82.