U.S. stocks dropped on worries that good news on the job market may prove to be bad for Wall Street by keeping inflation and interest rates high. The S&P 500 fell 1.5% Friday.

U.S. stock indexes are feeling pressure from better-than-expected reports on the job market and business activity.

The market outlook for 2025 sees U.S. GDP growing at a healthy rate, the stock market gains diversifying beyond the Magnificent Seven—with health care a likely winner—and an evolution in the AI sector that powered virtually all of last year’s rally.

Investors head into the new year believing the economy on a firm footing. That wasn’t the case at the start of 2024, when even the most bullish analysts underestimated the strength of the market.

U.S. stocks dropped on worries that good news on the job market may prove to be bad for Wall Street by keeping inflation and interest rates high.

US stocks plunged on Friday following a stronger-than-expected jobs report, tempering Wall Street’s hopes for additional interest rate cuts by the Federal Reserve in the near term. The Dow Jones Industrial Average sank by 592 points,

U.S. stocks are recoiling on worries that good news on the job market may prove to be bad for Wall Street by keeping inflation and interest rates high.