Dow, S&P 500, Nasdaq sink as jobs report blows past expectations

Venu Sports, the upcoming sports streaming service from Disney’s ESPN (DIS

), Warner Bros. Discovery (WBD), and Fox (FOXA), will no longer make its debut.

“After careful consideration, we have collectively agreed to discontinue the Venu Sports joint venture and not launch the streaming service,” the three companies said in a joint statement on Friday.

“In an ever-changing marketplace, we determined that it was best to meet the evolving demands of sports fans by focusing on existing products and distribution channels.”

The news caps off a wild week for Venu after news and sports streamer FuboTV (FUBO), which filed an antitrust lawsuit against the platform’s launch last year, settled all litigation related to the debut earlier this week. The settlement coincided with an announcement that Fubo, an internet TV bundler, would join forces with Disney’s Hulu + Live TV business.

Separately, Disney will roll out an ESPN flagship streaming service service this fall.

Fubo stock popped around 10% in early trading on Friday after surging 250% Monday on the heels of the Disney deal announcement. Fox and WBD shares fell on the news. Disney’s stock traded flat.

The “higher for longer” narrative just got a dose of strength on Friday.

The nonfarm-payrolls report showed a very healthy labor market: The US economy added over 250,000 jobs in December, while the unemployment rate fell to 4.1%. On its face, that’s good news. But the fresh data also fed into a dilemma for Wall Street: A strong reading could prompt the Fed to nudge rates higher.

US stocks pulled back at the open as investors digested the final 2024 jobs report, which blew past expectations on hiring, raising more uncertainty when the next rate cut will come.

The Dow Jones Industrial Average (^DJI) slipped roughly 0.5%, while the S&P 500 (^GSPC) shed 0.6%. The tech-heavy Nasdaq Composite (^IXIC) fell 0.9%, leading declines as the major gauges set up for weekly losses.

The US economy added 256,000 jobs in December, the most in nine months and almost 100,000 more than Wall Street had expected as the labor market finished 2024 on a surprising high note.

In December, the unemployment rate also fell to 4.1% from 4.2%. Revisions showed the unemployment rate never reached the high of 4.3% reported initially in November.

Friday’s report saw Treasury yields rise as investors continue to push back expectations for Fed rate cuts in 2025, with no cuts expected now before June. Stock futures turned lower following the report.