Stocks opened lower Monday and stayed that way through the close. Amid a bare economic calendar and just a smattering of earnings reports released ahead of the open, attention was focused on last Friday's stunning jobs report – and what it could potentially mean for the Federal Reserve's rate-hike plans going forward.
The January jobs report came in much higher than expected and the unemployment rate fell to its lowest point since 1969. This sparked concern that the Fed will have to continue raising interest rates to stamp out inflation.
"While there were some promising aspects of the jobs report – cooling wage growth and higher participation – it's impossible to ignore the fact that the labor market remains red hot," says Craig Erlam, senior market analyst at currency data provider OANDA. "Of course, no one will be surprised if we see huge revisions next month – we've seen some substantial ones recently after all – but for now, it's hard to argue that the easier policy move for the Fed is to keep hiking in 25 basis point increments."
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.
Wall Street could get some hints tomorrow as to what the central bank plans to do next, with Fed Chair Jerome Powell slated to participate in a moderated discussion at the Economic Club of Washington D.C.
In single-stock news, Dell Technologies (DELL, -3.0%) said it's laying off roughly 5% of its global workforce, equating to around 6,600 jobs, as "market conditions continue to erode," said Jeff Clarke, the PC maker's co-chief operating officer, in a note to employees. Meanwhile, Tyson Foods (TSN) fell 4.6% after the meat processor reported fiscal first-quarter earnings of 85 cents per share on $13.3 billion in sales, missing consensus estimates.
As for the major benchmarks, the Dow Jones Industrial Average slipped 0.1% to 33,891, the S&P 500 gave back 0.6% to 4,111, and the Nasdaq Composite finished 1.0% lower at 11,887.
The Best Gold ETFs to Buy
Gold gained ground today, rising nearly 0.2% to $1,879.50 an ounce. After trending lower for most of 2022, the precious metal has been on quite a run in recent months, up about 15% since early November.
"The recovery in gold has primarily been fueled by a weakening dollar and fading market expectations for a further prolonged Federal Reserve (Fed) rate hike cycle due to receding inflation pressures in the U.S.," says Adam Turnquist, chief technical strategist at LPL Financial. "Rising demand from foreign central banks, including the People's Bank of China (PBOC), has provided an additional tailwind for gold."
Although gold's rally has pushed the price of the precious metal into overbought territory – a move that sparked some profit-taking last week – Turnquist believes there could be more upside ahead. Continued gains would benefit gold stocks, and gold ETFs would also reap rewards.
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
5 Types of Gifts the IRS Won’t Tax: Even If They’re BigGift Tax Several categories of gifts don’t count toward annual gift tax limits. Here's what you need to know.
-
The 'Scrooge' Strategy: How to Turn Your Old Junk Into a Tax DeductionTax Deductions We break down the IRS rules for non-cash charitable contributions. Plus, here's a handy checklist before you donate to charity this year.
-
December Fed Meeting: Updates and CommentaryThe December Fed meeting is one of the last key economic events of 2025, with Wall Street closely watching what Chair Powell & Co. will do about interest rates.
-
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.
-
The Delayed September Jobs Report Is Out. Here's What It Means for the FedThe September jobs report came in much higher than expected, lowering expectations for a December rate cut.
-
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.
-
October Fed Meeting: Updates and CommentaryThe October Fed meeting is a key economic event, with Wall Street turned into what Fed Chair Powell & Co. did about interest rates.
-
The Delayed September CPI Report is Out. Here's What it Signals for the Fed.The September CPI report showed that inflation remains tame – and all but confirms another rate cut from the Fed.
-
What the Rich Know About Investing That You Don'tPeople like Warren Buffett become people like Warren Buffett by following basic rules and being disciplined. Here's how to accumulate real wealth.
