CNBC Business News Update - Market Close: Stocks Sink, Renewed Inflation Worries, Meta Bucks The Trend 2/7/25

Episode Date: February 7, 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 and reported by CNBC's Jill Schneider.

I'm Jill Schneider, CNBC. Wall Street wrapped up the day and the week in the red. The Dow sank 444 points, about a percent. The S&P 500 lost 57 points, and the Nasdaq dropped 268 points, about one and a third percent. Traders reacted to a weaker-than-expected jobs report, and the closely watched University of Michigan Consumer Survey indicated consumers are more concerned about near-term inflation. Jan Hatzias, chief economist and head of global investment research at Goldman Sachs,

says he's not overly worried about a resurgence of inflation. He believes interest rates will hold steady. I think it's very unlikely, in fact, that the Fed's going to hike. I think at the moment they're quite comfortably on hold. They think rates are restrictive. That was very clear in the press conference. Other Fed officials have said it. But the debate is about how long to stay at this restrictive level.

And I think it's going to be, you know, quite a while. Here's former Fed Vice Chairman Richard Clarida with his take on the University of Michigan survey. Not good. Hopefully it's a blip. Look at a number like that and you're thinking it's probably an aberration, but my goodness, not good if it were to continue for sure. Clarida is now the global economic advisor at PIMCO. Shares of Pinterest were on a tear, up 19 percent today and up 38 percent so far this year. The company beat Wall Street estimates for fourth quarter revenue. We asked Pinterest CEO Bill Reddy if he's concerned about potential tariffs and how they may impact some of his international clients. One of the things that, you know, the pandemic taught us was that even if there are major

disruptions in supply chains and things like that, people are still going to shop. They'll find substitute products, they'll find other places, and Pinterest is exactly the kind of place you go to do that. So I can't predict what will happen with tariffs in one place or another, but what I can say is that Pinterest is going to be a fantastic shopping destination, and users will find their way to go get products from whatever makes sense for them, and we're going to be a great place for them to do that. Meta bucked the downward trend on Wall Street. The stock hit a new 52-week high and finished higher for the 15th straight day. Would you take a pay cut to be able to work from home? A new Pew Research Center study found 40% of workers

said they'd accept a pay cut of at least 5% to be able to work remotely. 9% said they'd trade 20 percent of their salary to avoid going back to an office full-time. Jill Schneider, CNBC.