Groundhog Day Meltdown Casts Shadow Over Stock Market
Dow plunges more than 600 points on Friday after January jobs report causes jitters, and Exxon earnings and Apple earnings disappoint.
Call it a coincidence, but Punxsutawney Phil's prediction of six more weeks of winter seemingly had a chilling effect on the stock market.
What Happened in the Stock Market Today?
While Main Street celebrated a January employment report that showed better-than-expected job growth and the fastest pace of wage growth in eight years, Wall Street took the news much differently. Concerns over the potential impact of a tightening labor market on Corporate America, not to mention a couple of faceplants by large Dow components, sent the industrial average down 2.5% to 25,520 on Friday, Feb. 2. All told, the Dow has lost 4.1% over the past five sessions -- including the Groundhog Day decline of 666 points -- marking its worst single-week performance since January 2016.
The wage-growth worry on Wall Street is twofold: Fatter paychecks for employees could eventually cut into company profits, and rising wages could be signaling a coming pickup in inflation. The latter, in theory, could trigger quicker rate hikes by the Federal Reserve -- a fear that's showing up in the bond market, with the 10-year Treasury yield hitting multiyear highs above 2.8%. Also hampering the Dow were Exxon Mobil (XOM, -5.3%), which missed earnings expectations, and Apple (AAPL, -4.4%), which beat profit estimates but earned analyst downgrades because quarterly iPhone sales came up short.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
This week was ugly -- adorable woodchuck aside -- but it's far from time to hit the panic button. Instead, it may just be a reminder to be more critical about strategy and timing. For instance, a number of high-yield dividend stocks have quietly been dipping for several months, and already are reaching bargain prices. But even the market's most stable of blue chips have lost a little skin this week, and could shed more in a steeper broad-market downturn. Opportunistic investors should keep on the watch for the chance to buy these quality names on the cheap.
-
The Kiplinger Letter's 10 Forecasts for 2026The Kiplinger Letter Here are some of the biggest events and trends in economics, politics and tech that will shape the new year.
-
We're retired and mortgage-free, but he wants to downsize.We've paid off our mortgage, have $970K in savings and $5K each month from Social Security. Kiplinger asked wealth planners for advice.
-
How to Avoid Feeling Too Guilty to Spend in RetirementAre you living below your means in retirement because you fear not having enough to leave to your kids? Here's how to get over that.
-
Dow, S&P 500 Rise to New Closing Highs: Stock Market TodayWill President Donald Trump match his Monroe Doctrine gambit with a new Marshall Plan for Venezuela?
-
'Donroe Doctrine' Pumps Dow 594 Points: Stock Market TodayThe S&P 500 rallied but failed to turn the "Santa Claus Rally" indicator positive for 2026.
-
If You'd Put $1,000 Into Lowe's Stock 20 Years Ago, Here's What You'd Have TodayLowe's stock has delivered disappointing returns recently, but it's been a great holding for truly patient investors.
-
If You'd Put $1,000 Into 3M Stock 20 Years Ago, Here's What You'd Have TodayMMM stock has been a pit of despair for truly long-term shareholders.
-
Stocks Chop as the Unemployment Rate Jumps: Stock Market TodayNovember job growth was stronger than expected, but sharp losses in October and a rising unemployment rate are worrying market participants.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
-
If You'd Put $1,000 Into Home Depot Stock 20 Years Ago, Here's What You'd Have TodayHome Depot stock has been a buy-and-hold banger for truly long-term investors.
