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Benchmark US indices closed lower on Friday, January 7, dragged down by technology and utility stocks after mixed cues from the economy.
The S&P 500 fell 0.41% to 4,677.03. The Dow Jones fell 0.01% to 36,231.66. The NASDAQ Composite was down 0.96% to 14,935.90, and the small-cap Russell 2000 declined 1.10% to 2,182.07.
Although traders kicked off the first-day trading of 2022 on a positive note, suspense over a sooner-than-expected rate hike built up soon, forcing them to take defensive positions.
The expectations were further bolstered by Fed’s minutes released on Thursday, which showed that most economists favored a hike to curb the current high inflation.
The central bank’s observations prompted investors to cut back their bullish bets.
Meanwhile, on Friday, the Labor Department said that the economy added 199,000 nonfarm jobs in December against an expected 422,000 jobs. Nonetheless, the unemployment rate declined to 3.9% in the month from 4.2% in November. The average hourly earnings rose 4.7% YoY in December, it said.
Technology stocks were the hardest hit in Friday’s session after Treasury yields climbed persistently but bond prices fell. Investors seemed to be pricing in the possibility of an early interest rate increase.
Four of the 11 sectors of the S&P 500 closed in the green on Friday. Energy, financials, and industrial stocks were the top movers. Consumer discretionary, utility, and technology segments declined.
GameStop Corporation (GME) stock jumped over 5% in intraday trading after Wall Street Journal reported it is planning to enter the cryptocurrency and non-fungible token (NFT) market.
Discovery, Inc. (DISCA) stock grew over 16% after the Bank of America upgraded its rating for the stock.
Absci Corporation (ABSI) jumped over 17% after announcing a research collaboration with Merck & Company, Inc. (MRK).
In the energy sector, Exxon Mobile Corporation (XOM) jumped 0.91%, Chevron Corporation (CVX) rose 1.54%, and ConocoPhillips (COP) surged 2.85%. EOG Resources Inc. (EOG) was up 1.87%, and Schlumberger N.V. (SLB) increased by 2.88%.
In the financial sector, JP Morgan Chase & Co. (JPM) stock surged 0.97%, Bank of America Corporation (BAC) jumped 1.81%, and Wells Fargo & Company (WFC) increased by 1.94%. Morgan Stanley (MS) and Charles Schwab Corporation (SCHW) were up by 0.54% and 1.42%, respectively.
In the consumer discretionary segment, Amazon.com Inc. (AMZN) fell 0.48%, Tesla Inc. (TSLA) was down 3.52%, and Home Depot Inc. (HD) decreased by 2.64%. Nike Inc. (NKE) and McDonald’s Corporation (MCD) declined by 2.08% and 0.64%, respectively.
The global cryptocurrency market was down 4.82% to US$1.97 trillion at 3:40 pm ET, as per coinmarketcap.com. Bitcoin (BTC) fell 3.36% to US$41,826.77.
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Image description: Energy, financial, and industrial services sectors were the top movers on S&P 500 index Friday.
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Futures & Commodities
Gold futures climbed 0.32% to US$1,794.95 per ounce. Silver futures increased by 0.65% to US$22.335 per ounce, while copper jumped 1.14% to US$4.4043.
Brent oil futures decreased by 0.13% to US$81.88 per barrel and WTI crude futures were down 0.55% to US$79.02.
Bond Market
The 30-year Treasury bond yields increased 1.09% to 2.116, while the 10-year bond yields were up 2.18% to 1.771.
US Dollar Futures Index declined 0.60% at US$95.748.
