Wall Street tumbles on massive payroll numbers, oil climbs to $76, US dollar hits 26-month highs: what’s moving markets Friday?

Wall Street faced heavy selling pressure in its first trading session after the funeral of former President Jimmy Carter, as a series of economic events roiled interest rates and securities markets. energy, causing increased risk aversion among investors.

The U.S. economy added 256,000 jobs in December, far surpassing expectations for a slowdown to 160,000. The unemployment rate fell to 4.1%, defying forecasts for 4.2%.

This labor market data has prompted traders to recalibrate their interest rate forecasts. Expectations for a rate cut have been pushed further and further out, with markets now fully pricing in a cut only by September 2025, according to CME FedWatch.

And to add to the market turmoil, oil prices – as tracked by the United States Oil Fund (NYSE:USO) – jumped more than 3% to $76 a barrel after the Biden administration imposed tougher sanctions on Russian oil exports. These measures have targeted Russia’s major oil companies, shadow fleet tankers and opaque trading networks, intensifying pressure on Moscow’s energy revenues.

Growing concerns over interest rates and uncertainty over inflation weighed heavily on stocks. The University of Michigan’s latest consumer sentiment survey showed five-year inflation expectations rising to 3.3%, the highest reading since June 2008.

The S&P 500 index fell almost 2%, remaining around the 5,800 point mark, completely erasing the gains recorded since the elections.

Technology and small-cap stocks were hit hardest by the selling, with sharper declines in both sectors.

The US Dollar Index (DXY) climbed to 109.70, reaching its highest level since November 2022. The greenback is on track to record its sixth consecutive weekly gain and has risen 14 times in the past 15 weeks , highlighting its dominance as a safe haven amid market turbulence.

Treasury yields also rose as fixed-income investors braced for the possibility of persistent inflation. The yield on the 10-year Treasury note rose seven basis points to 4.76%, approaching its October 2023 highs.

The 30-year Treasury yield briefly touched the 5% mark, a level last reached in October 2023 and previously in August 2007.

Gold prices offered a safe haven for risk-conscious investors, rising 0.9% following increased geopolitical uncertainties.

Meanwhile, the Bitcoin (CRYPTO:BTC) saw some downward buyback movement, up 1.2%, ending a three-day losing streak in which it lost 10% of its value.

The highlights of this session according to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust (NYSE:SPY) a atteint 588,43 dollars.
• The SPDR Dow Jones Industrial Average (NYSE:DIA)), was unchanged at $425.08.
• The Invesco QQQ Trust Series (NASDAQ:QQQ)), which is heavily exposed to technology, fell 0.1% to $514.72.
• The iShares Russell 2000 ETF (NYSE:IWM) fell 1% to $220.91.
• The S&P Dow Jones Index Group’s (NYSE:XLV) Healthcare Sector Impact Index outperformed other index groups, rising 0.4%; S&P Dow Jones Index Group’s Communications Sector Impact Index (NYSE:XLC) lagged, falling 0.9%.

Friday stock market movements

• Advanced Micro Devices Inc. (NASDAQ:AMD) fell 5% after Goldman Sachs lowered its rating on the stock from Buy to Neutral.
• Delta Air Lines Inc. (NYSE:DAL) jumped more than 10%, following the release of stronger-than-expected fourth-quarter results.
• Other stocks that reacted to their companies’ results included Jefferies Financial Group Inc. (NYSE:JEF), down 12%; Constellation Brands Inc. (NYSE:STZ), down 16%; TD Synnex Corp. (NYSE:SNX), up 6.2% et Walgreens Boots Alliance Inc. (NASDAQ:WBA), down 26%
• Insurance-related stocks saw losses as damage from the California wildfires continues to pile up. The actions ofAmerican International Group Inc. (NYSE:AIG) fell nearly 2%. During this time, Allstate Corp. (NYSE:ALL) et Chubb Ltd. (NYSE:CB) fell 7.4% and 4.8%, respectively.
• Energy stocks rose in response to rising oil prices. Chevron Corp. (NYSE:CVX) rose 2%, driven by an upbeat note from Bank of America Securities.

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