U.S. Stocks Open Lower as Fed Rate Hike Fears Grow

U.S. stocks opened lower on Monday as investors reacted to the hot January jobs report that sparked fears of higher inflation and an eventual rate hike from the Federal Reserve.[0] The Dow Jones Industrial Average dropped 0.1%, or 35 points, while the S&P 500 fell 0.6% and the Nasdaq Composite ended 1% lower.[1]

The 10-year U.S. Treasury yield rose 10 basis points to 3.64%, while the 2-year yield rose 16 basis points to 4.46%.[2] Among active stocks, Chegg (CHGG) slumped on a dour outlook.[3]

International Trade in Goods and Services reported a trade balance of -$67.40B, worse than the -$68.8B expected, but improved from the -$61.00B in November.[4]

Investors will be watching for remarks on Tuesday from Federal Reserve Chair Jerome Powell, who will speak at the Economic Club of Washington, D.C. at noon ET.[5] Notable companies reporting this week include Disney (DIS), BP (BP), PepsiCo (PEP), Uber (UBER), Chipotle Mexican Grill (CMG), and AbbVie (ABBV).[6]

Additionally, Dell Technologies (DELL) announced it will eliminate about 6,650 jobs, or roughly 5% of its global workforce.[7] Meanwhile, oil prices ticked up, with West Texas Intermediate (WTI) crude up 0.7% to $73.93 per barrel.[1]

0. “U.S. stocks open lower adding to losses after shocking jobs report” MarketWatch, 6 Feb. 2023, https://www.marketwatch.com/story/u-s-stocks-open-lower-adding-to-losses-after-shocking-jobs-report-01675694113

1. “Stock market news today: Yields jump ahead of speech from Fed’s Powell” Markets Insider, 6 Feb. 2023, https://markets.businessinsider.com/news/stocks/stock-market-news-today-dow-sp500-bond-yields-jerome-powell-2023-2

2. “Stock Market On The Defensive Ahead Of Powell’s Comments; C3.ai Up 150% | Investor’s Business Daily” Investor’s Business Daily, 6 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/stock-market-catches-it-breath-after-recent-gains-onsemi-shows-strength/

3. “Dow futures slip 30 pts; seeking direction ahead of Powell speech By Investing.com” Investing.com, 7 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-futures-slip-30-pts-seeking-direction-ahead-of-powell-speech-2996962

4. “Nasdaq, S&P futures rebound slightly as Wall Street awaits Jay Powell” Seeking Alpha, 7 Feb. 2023, https://seekingalpha.com/news/3932699-nasdaq-sp500-dow-jones-stock-market

5. “Nasdaq, S&P, Dow trade mixed as Wall Street awaits Jay Powell” msnNOW, 7 Feb. 2023, https://www.msn.com/en-us/money/markets/nasdaq-sandp-dow-trade-mixed-as-wall-street-awaits-jay-powell/ar-AA17c82Q

6. “Stock Market News Today: Indices Begin Week on a Low Note” TipRanks, 6 Feb. 2023, https://www.tipranks.com/news/stock-market-news-today-futures-down-on-solid-jobs-report-and-fed-speech-ahead

7. “Stock market news live updates: Stocks start week lower as investors ponder Fed’s rate path” Yahoo News, 6 Feb. 2023, https://news.yahoo.com/stock-market-news-live-updates-february-6-2023-111713832.html