Stock Market Today: S&P 500 dips, Nasdaq Composite slides, Dow Jones gains; Treasury yield surges, Amazon tumbles—Pinterest, JPMorgan, Expedia, and Deckers the stocks to watch

S&P 500 edged lower on Friday as traders analyzed the latest employment data and its impact on interest rates. The broad market index declined by 0.3%, while the Dow Jones Industrial Average gained 107 points (0.2%) and the Nasdaq Composite slid by 0.7%.

How did the jobs report impact the market?

January’s employment data revealed that only 143,000 jobs were added, significantly below expectations. However, the unemployment rate fell to 4% from 4.1%, and revisions to November and December’s figures showed stronger-than-expected job growth. Additionally, average hourly earnings for January rose more than expected, intensifying inflation concerns.

What was the market reaction to treasury yields?

Following the jobs report, the 10-year Treasury yield surged above 4.47%, impacting investor sentiment. Rising yields generally put pressure on equities, particularly growth stocks.

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Why did consumer sentiment decline in february?

The University of Michigan’s preliminary consumer sentiment reading for February dropped to 67.8, well below economist forecasts of 71.3. Inflation expectations also rose, with the one-year outlook increasing to 4.3% from 3.3% in January, the highest level since November 2023.

Will the Fed keep interest rates on hold?

Bryce Doty, a senior portfolio manager at Sit Investment Associates, commented, “Today’s employment report probably keeps the Fed on hold for probably one more meeting.” He noted that while job growth was underwhelming, the lower unemployment rate and strong wage growth indicate a resilient labor market.

Why did Amazon shares drop despite strong earnings?

Amazon’s stock fell by 2% as its first-quarter revenue growth projection of 5% to 9% disappointed investors. Despite exceeding expectations in both revenue and earnings for Q4, concerns over slowing growth overshadowed the results.

How did the major indices perform this week?

On Thursday, the S&P 500 gained 0.4%, the Nasdaq Composite rose 0.5%, while the Dow Jones dipped 0.3%. Despite Friday’s decline, all three indices were on track for weekly gains: the S&P 500 was up 0.7%, the Nasdaq increased by 0.8%, and the Dow advanced by 0.5%.

What role did trade tariffs play in market volatility?

Market movements earlier in the week followed President Donald Trump’s announcement of 10% tariffs on China, along with proposed but later paused 25% levies on Canada and Mexico. BD8 Capital Partners CEO Barbara Doran stated, “The Trump administration will pose a ‘wild card’ for the market, particularly with valuations where they are.”

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What were the key stock upgrades and downgrades?

HSBC upgraded Expedia to a “buy” rating, raising its price target from $195 to $215, citing strong growth in Vrbo’s bookings.

Citi upgraded Deckers Outdoor to a “buy” rating, setting a $215 price target, 25% above its latest close.

Wells Fargo raised its JPMorgan price target from $270 to $300, citing potential benefits from a second Trump administration.

Pinterest shares surged 20% after beating earnings expectations and receiving an upgrade from Bernstein, which raised its price target from $34 to $47.

What are investors feeling about the market?

A survey from the American Association of Individual Investors showed bearish sentiment at a 15-month high. Bearish outlook rose to 42.9%, well above the historical average of 31%, while bullish sentiment dropped to 33.3%. Over 52% of investors now believe U.S. stocks are overvalued.

FAQs:

Why did the S&P 500 dip today?
The market reacted to mixed U.S. labor data and rising Treasury yields.

Why did Amazon’s stock fall?
Amazon issued weaker-than-expected revenue guidance, disappointing investors.