U.S. Stock Market Faces Downward Pressure Amid Strong Job Growth in December
January 10, 2025 – U.S. stocks opened lower on Friday, with the Dow Jones Industrial Average dropping by 500 points, signaling investor concerns despite the strong economic data reported earlier this week. The Dow fell by 1.18%, settling at 42,130.51, while the NASDAQ experienced a steeper decline of 1.54%, closing at 19,178.72. Similarly, the S&P 500 also trended downward, losing 1.26% to reach 5,843.63.
Sector Performance: Energy Rises While Technology Struggles
In terms of sector performance, energy stocks managed to buck the trend, gaining 0.6%. However, information technology stocks were among the hardest-hit, plunging by 2.1% amid broader market weakness.
The mixed performance across sectors highlights the volatility in the markets, with investors seemingly cautious despite a strong labor market report.
U.S. Labor Market Shows Resilience in December
The U.S. labor market ended 2024 on a positive note, adding 256,000 jobs in December, well above economists’ expectations of 160,000 payrolls. The revised figure for November was 212,000, further emphasizing the ongoing strength of the economy.
Nonfarm payrolls experienced solid growth last month, underscoring the continued resilience of the U.S. economy despite rising uncertainties in the stock market. This jobs growth comes at a time when many are concerned about potential headwinds in 2025, but the data reinforces the economy’s ability to withstand challenges.
