Stock indexes are down as bond yields rise on inflation concerns.

From Nasdaq: 2025-02-07 13:07:39

Stock indexes are down today, with the S&P 500, Dow Jones, and Nasdaq all in the red. Bond yields are up as the US unemployment rate fell to an 8-month low, impacting stock performance negatively. Earnings reports show a mixed bag, with Amazon and Microchip down, while Expedia and Take-Two are up significantly.

US nonfarm payrolls rose less than expected in January, but the unemployment rate dropped to 4.0%. Average hourly earnings also exceeded expectations. Consumer sentiment fell to a 7-month low, while inflation expectations rose unexpectedly. Hawkish comments from the Dallas Fed President are adding pressure on stocks and bonds.

European government bond yields are rising, while German industrial production fell but exports and imports unexpectedly rose in December. The ECB is expected to cut rates at its March meeting. US stock movers include declines in Amazon, FMC, and homebuilders due to higher T-note yields, while chip stocks are also down. Gain leaders include Expedia, Take-Two, Monolithic Power Systems, and Affirm Holdings.



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