Please ensure Javascript is enabled for purposes of website accessibility

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

3 days ago

Trump Says He’s Willing to Let Migrant Farm Laborers Stay in US

3 days ago

US Electric Vehicle Tax Breaks Will Expire on Sept. 30

3 days ago

Eyeing Arctic Dominance, Trump Bill Earmarks $8.6 Billion for US Coast Guard Icebreakers

3 days ago

Trump’s Sweeping Tax-Cut and Spending Bill Wins Congressional Approval

3 days ago

Americans Celebrate Their Independence With Record-Breaking Travel Numbers

4 days ago

US Supreme Court to Decide Legality of Transgender School Sports Bans

4 days ago

Nvidia Set to Become the World’s Most Valuable Company in History

4 days ago

Poll: 41% in US ‘Extremely Proud’ to Be American, Near Historic Low

4 days ago
Stock Market Today: Wall Street Slips as Consumers Worry About Inflation
gvw_ap_news
By Associated Press
Published 5 months ago on
February 7, 2025

Wall Street faces pressure as consumer inflation worries grow and Amazon's outlook disappoints, despite mixed job market data. (AP/Richard Drew)

Share

U.S. stocks are falling Friday after a discouraging report suggested U.S. consumers are bracing for much higher inflation, while a separate update gave a mixed picture of the U.S. job market.

The S&P 500 was 0.6% lower and close to wiping out what had been a modest gain for the week, as of 11:30 a.m. Eastern time, while the Dow Jones Industrial Average was down 260 points, or 0.6%. A sharp drop for Amazon following its latest profit report helped drag the Nasdaq composite to a market-leading loss of 1%.

Treasury yields also climbed in the bond market after Friday morning’s report suggested sentiment is unexpectedly souring among U.S. consumers. The preliminary report from the University of Michigan said U.S. consumers are expecting inflation in the year ahead to hit 4.3%, the highest such reading since 2023.

That’s a full percentage point above what they were expecting a month earlier, and it’s the second straight increase of an unusual amount. Some economists pointed to the possibility of U.S. tariffs on a wide range of imported products, which President Donald Trump has proposed and could ultimately push up prices for U.S. consumers.

Mixed Job Market Report

The consumer-sentiment data followed a mixed report on the U.S. job market. It showed hiring last month was less than half of December’s rate, but it also included encouraging nuggets for workers: The unemployment rate eased, and workers saw bigger gains in average wages than economists expected.

All the data taken together could keep the Federal Reserve on hold when it comes to interest rates. The Fed began cutting its main interest rate in September in order to relax the pressure on the economy and job market, but it warned at the end of the year that it may cut fewer times in 2025 than it earlier expected given worries about inflation staying stubbornly high.

Market Reactions and Forecasts

Interest rates are one of the things Wall Street cares most about because lower rates can encourage investors to pay higher prices for stocks and other investments. The downside is they can also give inflation more fuel.

For Scott Wren, senior global market strategist at Wells Fargo Investment Institute, the jobs report did nothing to change his forecast for the Fed to cut the federal funds rate just once in 2025. That’s a touch more conservative than many traders on Wall Street, who collectively see a nearly 49% chance that the Fed will cut at least twice, according to data from CME Group. Of course, some traders are also betting on the possibility for zero cuts.

Company Earnings and Stock Movements

Amazon, one of Wall Street’s most influential companies, topped analysts’ expectations for earnings at the end of 2024, but its stock nevertheless fell 4%. Investors focused instead on its forecast for upcoming revenue, which fell short of analysts’ expectations.

Homebuilders also tumbled to sharp losses as fewer cuts to interest rates by the Fed could help keep mortgage rates high. D.R. Horton fell 4.5%, and Lennar sank 3.9%.

On the winning side of Wall Street was Expedia Group, which leaped 18.4% after reporting better profit for the last three months of 2024 than analysts had forecast.

Take-Two Interactive Software climbed 14.4% after the video-game company likewise topped profit expectations for the latest quarter. CEO Strauss Zelnick said strength for its NBA 2K game was a major reason. The company also said it continues to expect its latest Grand Theft Auto game to release in the fall, easing concerns about a potential delay.

RELATED TOPICS:

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

How Trump’s ‘Big, Beautiful Bill’ Will Make China Great Again

DON'T MISS

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

DON'T MISS

Trump to Sign Tax-Cut and Spending Bill in July 4 Ceremony

DON'T MISS

Madre Fire Spurs Evacuations Across 3 Counties, Grows to More Than 70,000 Acres

DON'T MISS

Clovis, Sanger, Madera, and Bass Lake Will Light the Sky With Fireworks Shows Tonight

DON'T MISS

Oil Dips Ahead of Expected OPEC+ Output Increase

DON'T MISS

613 Killed at Gaza Aid Distribution Sites, Near Humanitarian Covoys, Says UN

DON'T MISS

Fresno County Authorities Investigating Suspicious Death of Transient Man

DON'T MISS

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

DON'T MISS

Israeli Military Kills 20 in Gaza as Trump Awaits Hamas Reply to Truce Proposal

UP NEXT

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

UP NEXT

Trump to Sign Tax-Cut and Spending Bill in July 4 Ceremony

UP NEXT

Madre Fire Spurs Evacuations Across 3 Counties, Grows to More Than 70,000 Acres

UP NEXT

Clovis, Sanger, Madera, and Bass Lake Will Light the Sky With Fireworks Shows Tonight

UP NEXT

Oil Dips Ahead of Expected OPEC+ Output Increase

UP NEXT

613 Killed at Gaza Aid Distribution Sites, Near Humanitarian Covoys, Says UN

UP NEXT

Fresno County Authorities Investigating Suspicious Death of Transient Man

UP NEXT

West Bank Town Becomes ‘Big Prison’ as Israel Fences It In

UP NEXT

Israeli Military Kills 20 in Gaza as Trump Awaits Hamas Reply to Truce Proposal

UP NEXT

Valley Crime Stoppers’ Most Wanted Person of the Day: Rachelle Maria Blanco

Trump Calls Musk’s Formation of New Party “Ridiculous” and Confusing

7 hours ago

Fresno DUI Driver Slams Into CHP Motorcycle, Tow Truck on Highway 99

13 hours ago

Russia Downs 120 Ukrainian Drones Overnight, Defense Ministry Says

13 hours ago

Israel Sends Delegation to Qatar for Gaza Talks Ahead of Netanyahu Trip to US

14 hours ago

San Luis Obispo’s Madre Fire Grows to Nearly 80,000 Acres, 30% Contained

14 hours ago

Musk Announces Forming of ‘America Party’ in Further Break From Trump

14 hours ago

Death Toll From Texas Floods Reaches 59, Including 21 Children

14 hours ago

California’s Politics Drifts Right While New York’s Leans Left

14 hours ago

How Trump’s ‘Big, Beautiful Bill’ Will Make China Great Again

2 days ago

What’s Caitlin Clark Worth to the WNBA? A Lot More Than Her $78,066 Salary.

2 days ago

TikTok Building New Version of App Ahead of Expected US Sale, the Information Reports

TikTok is building a new version of its app for users in the United States ahead of a planned sale of the app to a group of investors, The I...

7 hours ago

A logo is displayed over a door at the U.S. headquarters of the social media company TikTok in Culver City, California, U.S. January 17, 2025. (Reuters File)
7 hours ago

TikTok Building New Version of App Ahead of Expected US Sale, the Information Reports

Boxes of aid are stacked as Gaza Humanitarian Foundation said it has commenced operations to begin distribution of aid, in Rafah, in the southern Gaza Strip, May 26, 2025. (Reuters File)
7 hours ago

Hamas Government Office Rejects US Accusation of Involvement in Gaza Aid Site Attack

A volunteer searches for flood victims after deadly flooding in Kerr County, Texas, U.S., July 6, 2025. REUTERS/Sergio Flores
7 hours ago

Death Toll From Texas Floods Reaches 78, Trump Plans Visit

Tesla CEO and X owner Elon Musk listens as US President-elect Donald Trump speaks during a meeting with House Republicans at the Hyatt Regency hotel in Washington, DC, U.S. on November 13, 2024. (Reuters File)
7 hours ago

Trump Calls Musk’s Formation of New Party “Ridiculous” and Confusing

A 22-year-old suspected DUI driver crashed into a parked CHP motorcycle and tow truck on Highway 99 near Fresno, narrowly missing an officer and bystanders, CHP said Saturday, July 5, 2025. (CHP)
13 hours ago

Fresno DUI Driver Slams Into CHP Motorcycle, Tow Truck on Highway 99

A service member of a drone unit of the 24th Separate Mechanized Brigade named after King Danylo of the Ukrainian Armed Forces controls a heavy combat drone while it flies over positions of Russian troops, amid Russia's attack on Ukraine, in Donetsk Region, Ukraine June 12, 2025. (Reuters File)
13 hours ago

Russia Downs 120 Ukrainian Drones Overnight, Defense Ministry Says

An Israeli tank maneuvers in Gaza, as seen from the Israeli side of the border, July 6, 2025. (Reuters/Amir Cohen)
14 hours ago

Israel Sends Delegation to Qatar for Gaza Talks Ahead of Netanyahu Trip to US

The Madre Fire near New Cuyama has burned nearly 80,000 acres as of Sunday, July 6, 2025, morning, prompting widespread evacuation orders and warnings across three counties. (CalFire)
14 hours ago

San Luis Obispo’s Madre Fire Grows to Nearly 80,000 Acres, 30% Contained

Help continue the work that gets you the news that matters most.

Search

Send this to a friend