Stocks opened higher Friday as investors mulled over the February jobs report. However, the main indexes swung lower mid-morning and stayed there through the close as several heavy hitters in the tech sector sold off.
Ahead of the open, data from the Bureau of Labor Statistics showed the U.S. added 275,000 new jobs in February, blowing past economists' expectations for 200,000 jobs. Still, job gains for both December and January were revised lower and the unemployment rate rose to 3.9% from 3.7%.
The February jobs report signaled robust hiring "while also showing an increase in unemployment, moderating wage growth, and anemic labor force participation," says José Torres, senior economist at Interactive Brokers. "Bulls were focusing on the weaker aspects of the report by buying up speculative assets, stocks, and bonds," Torres adds, but bears pulled "an intraday interception."
Sign up for Kiplinger’s Free E-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.
Indeed, any excitement over the downwardly revised readings and the rising unemployment rate quickly vanished as several large and mega-cap tech stocks sold off sharply – dragging the main indexes with them.
Nvidia's reversal erases $127 billion in market value
Most notable was Nvidia (NVDA), which was up more than 5% in early trading only to end the day down 5.6% – a drop of $127 billion in market value. The red-hot chipmaker is one of the best stocks of the year, up nearly 77% even with today's decline.
For some additional context, consider the fact that this year-to-date gain has increased NVDA's market value by $967 billion, or $95 billion more than Berkshire Hathaway's (BRK.B) entire market cap.
Given NVDA's jaw-dropping run up the price charts, it's likely today's decline was a result of profit-taking. However, there was weakness seen across the industry.
Fellow semiconductor stocks Broadcom (AVGO, -7.0%) and Marvell Technology (MRVL, -11.4%), for instance, both fell sharply after earnings. While Broadcom beat on its top- and bottom-lines for fiscal Q1, its full-year revenue fell short of analysts' estimates. Marvell, meanwhile, reported in-line results for its fourth quarter but gave weaker-than-anticipated first-quarter guidance.
SOTU address does little to move markets
Also making headlines Friday was President Joe Biden's State of the Union address. The president covered a variety of topics Thursday evening, including new homebuyer tax credits and drug prices. He also proposed raising the rates for large corporations and billionaires.
However, considering anything proposed in the State of the Union likely has a long and arduous path to becoming a reality, "the potential for higher taxes on the wealthy … isn't upsetting the apple cart for markets," says Ryan Detrick, chief market strategist at Carson Group.
Indeed, today's volatile session came courtesy of the jobs report and sell-off in tech stocks. As for the indexes, the Nasdaq Composite, which was up 1% at its intraday high, finished the day down 1.2% at 16,085. The S&P 500 closed down 0.7% at 5,123, while the Dow Jones Industrial Average shed 0.2% to 38,722.
February CPI on deck
Looking ahead, the February Consumer Price Index (CPI) is arguably the most anticipated event on next week's economic calendar. The report, due out Tuesday morning, "should alleviate concerns that inflation is reaccelerating after the January data," writes Stephen Juneau, economist at BofA Securities, in a note to clients.
Juneau expects the headline CPI to rise 0.4% month-over-month – quicker than January's 0.3% increase – due to rising gas prices. But core CPI, which excludes volatile food and energy prices, is believed to be up 0.3% from January to February, below the prior month's 0.4% reading.
Related content
- Max Is Latest Streamer To Crack Down On Password Sharing
- Senate Set To Vote On Six-Bill Spending Package To Avert Shutdown
- Kiplinger's Earnings Calendar
-
Trump Targets Student Loan Forgiveness: Here’s How Taxes and Repayment Could Soon ChangeStudent Loans The so-called One Big Beautiful Bill and the Trump administration’s executive action are making the future of student loan forgiveness and its tax consequences uncertain.
-
California, South Florida, Long Island, New Jersey: The Places People Are Leaving in Droves in 2025Skyrocketing costs and shifting priorities mean people are packing up and leaving some cities and states in droves, while others are flocking to more affordable or lifestyle-friendly destinations.
-
Should You Start a 'Trump Account' for Your Child?"Trump Accounts" for kids is part of the One Big, Beautiful Bill that was just signed. Look at if it's worth it for your children.
-
I'm a Financial Strategist: This Is the Investment Trap That Keeps Smart Investors on the SidelinesForget FOMO. FOGI — Fear of Getting In — is the feeling you need to learn how to manage so you don't miss out on future investment gains.
-
Can You Be a Good Parent to an Only Child When You're Also a Business Owner?Author and social psychologist Susan Newman offers advice to business-owner parents on how to raise a well-adjusted single child by avoiding overcompensation and encouraging chores.
-
How Advisers Can Steer Their Clients Through Market Volatility (and Strengthen Their Relationships)Financial advisers need to be strategic when they communicate with clients during market volatility. The goal is to not only reassure them but to also help them avoid rash decisions, deepen your relationship with them and build lasting trust.
-
Stock Market Today: President Trump Reboots the Tariff TradeA broad consensus that markets hate uncertainty more than anything else is being tested on an almost daily basis in 2025.
-
The 60-40 Portfolio Rule of Investing: Not Dead Yet?Adding alternative investments to a balanced portfolio can smooth out returns.
-
The Hidden Costs of Caregiving: Crisis Goes Well Beyond Financial IssuesMany caregivers are drained emotionally as well as financially, leading to depression, burnout and depleted retirement prospects. What's to be done?
-
Cash Balance Plans: An Expert Guide to the High Earner's Secret Weapon for RetirementCash balance plans offer business owners and high-income professionals a powerful way to significantly boost retirement savings and reduce taxes.
