Dow Falls as Jobs Surprise Lifts Yields and AI Rebound Fades

The Dow Jones Industrial Average dropped 237.33 points, or 0.46%, to 51,285.73. The S&P 500 added 23.13 points, or 0.31%, to 7,376.86, and the Nasdaq Composite rose 264.43 points, or 1.09%, to 24,579.42. The Nasdaq’s advance narrowed slightly near the closing bell, signaling lingering caution ahead of the weekend.

Treasury yields and the dollar climbed after the employment figures strengthened expectations of further Federal Reserve rate increases. The two-year Treasury yield rose 0.045 percentage point to 4.520%, though it has declined for six consecutive weeks, its biggest six-week drop in more than a year. The 10-year yield gained 0.023 percentage point to 4.858%, while the 30-year yield rose 0.010 percentage point to 5.26%. The 30-year yield has fallen for five straight weeks, its longest such streak since 2022.

Oil futures were nearly unchanged, adding 31 cents, or 0.3%, to $90.83 a barrel in New York. Traders were awaiting possible shifts in Iran policy after the midterm elections. Oil recorded its steepest weekly decline since April after comments from President Trump and Vice President Vance suggested the U.S. might seek to exit the conflict.