CNBC Business News Update - Market Close: Stocks Plunge, Bond Yields Spike, Strong Jobs Report Sparks Fears Fed Won't Cut Rates 1/10/25

Episode Date: January 10, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Edinger, CNBC. Wall Street opens Monday morning after an ugly Friday sell-off for stocks, even with surprisingly strong jobs data. The Dow plunging almost 700 points, down 1.5%, led lower by shares of Travelers, an insurance company, down 4%. The S&P 500 indexed down 91 points, 1.5%, and the Nasdaq plunging 317 points. That was more than 1.5%. With five trading days now left before the inauguration, all of the Trump election win gains on Wall Street have been wiped out. Bespoke says the

previous three elections saw gains of four percent or more between election day and inauguration day. Investors watching bond yields spike, pushing stocks lower. They're feeling anxious over promised Trump administration policies that might hurt corporate profits. CNBC Markets editor Mike Santoli says it's just getting complicated. The market is liking the fact that the economy is strong in general, but that 250,000 monthly job gains, a little bit nervous about the response of the bond market and the Fed to that number if it kind of bakes it in as the new trend and therefore keeps rates higher than the real economy can ultimately withstand. I know that's a lot of like turnabouts and pretzel logic, but I think that's what's going on here.

The major averages are now lower for 2025. Companies that bucked the ugly trend on Friday, whose shares hit all-time highs, include Delta Airlines and United Airlines. Delta's CEO simply said people are flying, and he expects Delta to have its most profitable year ever this year. The brand is healthy. We're seeing a lot of momentum. Advanced bookings look great into the new year. We're looking at our all-time best year in our history. Delta CEO Ed Bastian on CNBC would be homebuyers, wishing for 6.9% mortgage rates again, especially as the spring homebuying season's

right around the corner. But now, 30-year home loans are at about 7.25%, their highest since last May. We are much higher. Rates have been rising since the start of this year, but today was a big one. The average rate on the 30-year fixed rose to 7.24%, that according to Mortgage News Daily. And from the most recent low in September, rates are up well over a full percentage point. So, okay, here comes more math. If you are buying the median priced home, which is around $400,000 today, and you're putting 20% down on a 30-year fixed, your monthly payment, principal and interest, is now $239 more than it

would have been just back in September. CNBC's Diana Olick. More companies curbing DEI policies, diversity, equity and inclusion programs, including Facebook and Instagram parent Beta and reportedly Amazon adults, is likely to be upheld by the Supreme Court. As it's a law Congress passed, the law says the app must be banned or sold to an American owner. On Monday's watch list, earnings are coming from homebuilder KB Home, but earnings season gets underway in earnest on Wednesday when the big banks start reporting their quarterly results. Monday night, the final NFL wildcard weekend game will be played in Arizona. The Rams lose that home field advantage in L.A. because of wildfires. They'll play the Vikings in that neutral site. Jessica Ettinger, CNBC. Essential investing tools for wealth management.

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