Wall Street faced heavy selling pressure in its first trading session after former President Jimmy Carter's funeral, as a series of economic developments rattled interest rate and energy markets, sparking heightened risk aversion among investors.

The U.S. economy added 256,000 jobs in December, far exceeding expectations of a slowdown to 160,000. The unemployment rate dipped to 4.1%, defying forecasts that had anticipated it to remain at 4.2%.

This red-hot labor market data spurred traders to recalibrate their interest-rate projections. According to the CME FedWatch Tool, expectations for a rate cut have been postponed even further, with markets now fully pricing in a reduction only by September 2025.

Adding to market turmoil, oil prices — as tracked by the United States Oil Fund USO — surged more than 3% to $76 per barrel after the Biden administration imposed stricter sanctions on Russian oil exports. These measures targeted major Russian oil companies, shadow fleet tankers and opaque trading networks, intensifying pressure on Moscow’s energy revenues.

Rising interest rate concerns and inflation uncertainty weighed heavily on equities. The latest University of Michigan consumer survey showed five-year inflation expectations rise to 3.3%, the highest since June 2008.

The S&P 500 dropped nearly 2%, hovering around the 5,800-point level, fully erasing gains made since the election.

Technology and small-cap stocks bore the brunt of the sell-off, with sharper declines across both sectors.

The U.S. Dollar Index (DXY) climbed to 109.70, marking its highest level since November 2022. The greenback is on track to notch its sixth consecutive weekly gain and has risen in 14 of the past 15 weeks, underscoring its dominance as a safe haven amid market turbulence.

Treasury yields climbed further as fixed-income investors braced for the possibility of persistent inflation. The 10-year Treasury yield rose seven basis points to 4.76%, nearing its late October 2023 highs.

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

Gold prices offered a haven for risk-averse investors, climbing 0.9% as geopolitical uncertainties mounted.

Meanwhile, Bitcoin BTC/USD saw some dip-buying activity, up by 1.2%, snapping a three-day losing streak during which it shed 10% of its value.

Friday’s Performance In Major U.S. Indices, ETFs

Major Indices	Price	1-day % chg
S&P 500	5,812.53	-1.8%
Dow Jones	41,837.77	-1.9%
Nasdaq 100	20,744.86	-2.1%
Russell 2000	2,173.84	-2.9%

According to Benzinga Pro data:

• The SPDR S&P 500 ETF Trust SPY flattened at $588.43.
• The SPDR Dow Jones Industrial Average DIA was unchanged at $425.08.
• The tech-heavy Invesco QQQ Trust Series QQQ eased 0.1% to $514.72.
• The iShares Russell 2000 ETF IWM dipped 1% to $220.91.
• The Health Care Select Sector SPDR Fund XLV outperformed, up 0.4%; the Communication Services Select Sector SPDR Fund XLC lagged, down 0.9%.

Friday’s Stock Movers

• Advanced Micro Devices Inc. AMD tumbled 5% after Goldman Sachs downgraded the stock from Buy to Neutral.
• Delta Air Lines Inc. DAL soared over 10%, following the release of stronger-than-expected fourth-quarter results. Industry peers American Airlines Group Inc. AAL and United Airlines Holdings Inc. UAL rose 4% and 5%, respectively.
• Other stocks reacting to earnings included Jefferies Financial Group Inc. JEF, down 12%; Constellation Brands Inc. STZ, down 16%; TD Synnex Corp. SNX, up 6.2% and Walgreens Boots Alliance Inc. WBA, up 26%,
• Insurance-linked stocks faced losses as damage from California’s wildfires continues to mount. Shares of American International Group Inc. AIG fell nearly 2%. Meanwhile, Allstate Corp. ALL and Chubb Ltd. CB plummeted by 7.4% and 4.8%, respectively.
• Energy stocks rose in response to soaring oil prices. Chevron Corp. CVX soared 2%, buoyed by a bullish note from Bank of America Securities.

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