Stock Market Today: Stocks Slide on Shockingly Strong Jobs Data
The major indexes tumbled as data on private payrolls and weekly jobless claims raised expectations for more rate hikes.
You are now subscribed
Your newsletter sign-up was successful
Want to add more newsletters?
Delivered daily
Kiplinger Today
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more delivered daily. Smart money moves start here.
Sent five days a week
Kiplinger A Step Ahead
Get practical help to make better financial decisions in your everyday life, from spending to savings on top deals.
Delivered daily
Kiplinger Closing Bell
Get today's biggest financial and investing headlines delivered to your inbox every day the U.S. stock market is open.
Sent twice a week
Kiplinger Adviser Intel
Financial pros across the country share best practices and fresh tactics to preserve and grow your wealth.
Delivered weekly
Kiplinger Tax Tips
Trim your federal and state tax bills with practical tax-planning and tax-cutting strategies.
Sent twice a week
Kiplinger Retirement Tips
Your twice-a-week guide to planning and enjoying a financially secure and richly rewarding retirement
Sent bimonthly.
Kiplinger Adviser Angle
Insights for advisers, wealth managers and other financial professionals.
Sent twice a week
Kiplinger Investing Weekly
Your twice-a-week roundup of promising stocks, funds, companies and industries you should consider, ones you should avoid, and why.
Sent weekly for six weeks
Kiplinger Invest for Retirement
Your step-by-step six-part series on how to invest for retirement, from devising a successful strategy to exactly which investments to choose.
Surprisingly strong jobs data sent a shockwave through the equities market Thursday, with stocks tumbling across the board. Still, the major indexes managed to finish off their session lows thanks to one sliver of hope in the labor market.
Ahead of the opening bell, data from ADP showed the U.S. added 497,000 private-sector jobs in June. This was the biggest monthly increase since July 2022, and more than doubled the 220,000 new payrolls economists' were expecting. The bulk of new positions were created in the "consumer-facing service industries," according to the report.
This theme of strength in the service sector was echoed in this morning's Institute for Supply Management (ISM) services purchasing managers index (PMI), which jumped to 53.9% in June from May's reading of 50.3%.
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.
"Demand for services is continuing to keep the labor market tight and drive inflation with job creation in June more than doubling analysts' expectations, and the latest ISM PMI-Services release reporting that economic growth within the category is accelerating," says José Torres, senior economist at Interactive Brokers.
Meanwhile, the Labor Department said earlier that initial jobless claims climbed 12,000 last week to 248,000.
One silver lining on the jobs front was the mid-morning release of the Job Openings and Turnover Survey (JOLTS), which showed job openings fell to 9.8 million in May from April's 10.3 million.
Energy stocks sell off on Iran worries
Expectations for more rate hikes sent Treasury yields to their highest levels since March. The spike, in turn, pressured rate-sensitive sectors like tech (-0.3%) and communication services (-0.8%).
But the worst performer of all 11 S&P 500 sectors was energy (-2.3%), which dove on reports that Iran tried to seize two oil tankers near the Strait of Hormuz. ConocoPhillips (COP, -3.5%) and Exxon Mobil (XOM, -3.7%) were just two energy stocks that suffered outsized losses, with the latter also getting hit after saying lower natural gas prices will likely weigh on its second-quarter earnings.
By the time the closing bell rang, the tech-heavy Nasdaq Composite was down 0.8% at 13,679, the broader S&P 500 was off 0.8% at 4,411, and the blue chip Dow Jones Industrial Average had dropped 1.1% to 33,922.
Monthly jobs report on deck
Today's batch of mostly disappointing economic data makes tomorrow's monthly jobs report all the more anxiously awaited. The Fed has mentioned several times that labor market tightness will likely force it to keep interest rates higher for longer in order to bring inflation under control.
Jan Hatzius, chief economist at Goldman Sachs, expects tomorrow's data to show the U.S. added 250,000 new jobs in June. While this is lower than the 339,000 jobs added in May, remember that economists were only anticipating the addition of 195,000 new positions that month. Furthermore, "job growth tends to pick up in June when the labor market is tight – reflecting strong hiring of youth summer workers – and all four of the Big Data indicators we track indicate a strong pace of job growth," the economist added.
In other words: Buckle up, because Friday could be another volatile session on Wall Street.
Related Content
-
Dow Leads in Mixed Session on Amgen Earnings: Stock Market TodayThe rest of Wall Street struggled as Advanced Micro Devices earnings caused a chip-stock sell-off.
-
How to Watch the 2026 Winter Olympics Without OverpayingHere’s how to stream the 2026 Winter Olympics live, including low-cost viewing options, Peacock access and ways to catch your favorite athletes and events from anywhere.
-
Here’s How to Stream the Super Bowl for LessWe'll show you the least expensive ways to stream football's biggest event.
-
If You'd Put $1,000 Into AMD Stock 20 Years Ago, Here's What You'd Have TodayAdvanced Micro Devices stock is soaring thanks to AI, but as a buy-and-hold bet, it's been a market laggard.
-
If You'd Put $1,000 Into UPS Stock 20 Years Ago, Here's What You'd Have TodayUnited Parcel Service stock has been a massive long-term laggard.
-
How the Stock Market Performed in the First Year of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
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.
