Traders work on the floor at the opening bell of the Dow Industrial Average at the New York Stock Exchange on March 18, 2020 in New York.
Bryan R. Smith/AFP/Getty Images
US stocks fell on Friday but finished the week higher after a slew of market-moving news.The Fed hiked interest rates, mega-cap tech reported earnings, and the January jobs report surprised to the upside.The US economy added 517,000 jobs in January and the unemployment rate fell to 3.4%.
US stocks fell on Friday but finished the week higher after a slew of market-shaking news, with the S&P 500 and Nasdaq 100 gaining about 2% and 3%, respectively.
On Wednesday, the Federal Reserve raised interest rates by 25 basis points and acknowledged that central bank policymakers are making progress in taming inflation. Fed Chairman Jerome Powell signaled to investors that future rate hikes are still on the table.
On Thursday, Apple, Alphabet, and Amazon reported earnings results that mostly missed analyst estimates. They also offered mixed guidance. Alphabet and Amazon fell in Friday trades, while Apple gained about 3%.
Finally, on Friday the January jobs report showed the US economy added 517,000 jobs in January, more than double the estimate of 188,000. The unemployment rate fell to 3.4%, representing the lowest level in 54 years.
About half of S&P 500 companies have reported fourth-quarter earnings. Of those companies, 70% are beating profit estimates by a median of 6%. Meanwhile, 62% of those companies are beating revenue estimates by a median of 4%, according to Fundstrat.
Here’s where US indexes stood at the 4:00 p.m. ET close on Friday:
S&P 500: 4,136.44, down 1.04%
Dow Jones Industrial Average: 33,925.58, down 0.38% (128.36 points)
Nasdaq Composite: 12,006.96, down 1.59%
Here’s what else happened today:
Nordstrom soared more than 30% on Friday after a report said activist investor Ryan Cohen is building a stake in the retailer. Cohen is known for his involvement in meme-stock GameStop.The average 30-year fixed mortgage rate fell back near 6% in an encouraging sign for potential home buyers who were previously priced out of the market. The US Justice Department is reportedly investigating Silvergate Capital’s ties with FTX and Alameda Research.Former Treasury Secretary Larry Summers warned that the US economy could come to a “sudden stop” despite the strong January jobs report.Logan Paul has been named as a defendant in a lawsuit that alleges the YouTube star helped perpetrate a crypto “rug pull” scam by promoting an NFT-based project that scooped up buyers’ money.
In commodities, bonds and crypto:
West Texas Intermediate crude oil fell 3.36% to $73.33 per barrel. Brent crude, oil’s international benchmark, dropped 2.82% to $79.85.Gold fell 2.69% to $1,878.80 per ounce.The yield on the 10-year Treasury jumped 10 basis points to 3.50%.Bitcoin fell 0.74% to $23,343, while ether rose 0.76% to $1,653.