U.S. stocks are recoiling on worries that good news on the job market may prove to be bad for Wall Street by keeping inflation and interest rates high.

In other words, history says the Nasdaq could advance 16% in 2025, but most Wall Street analysts see even more upside in Nvidia ( NVDA -0.02%) and Lam Research ( LRCX -0.62%), two companies that reset their soaring share prices by completing 10-for-1 stock splits in 2024.

Investors appeared to have entered the new year with cautious footing, with uncertainties around future Fed rate cuts and policies under the upcoming Trump administration. Thursday marked the first day for the market in 2025 and ended with the benchmark index in red.

U.S. stock indexes are feeling pressure from better-than-expected reports on the job market and business activity.

Spotify Technology (NYSE: SPOT) operates the world's largest music streaming platform, whereas Netflix (NASDAQ: NFLX) is the dominant streaming provider for movies and TV shows. Spotify stock soared by 140% during 2024,

U.S. stocks are sinking on worries that Friday’s good news on the job market may be too good and prove to be bad for Wall Street by keeping inflation and interest rates high.

U.S. stock futures quickly tumbled after the government said U.S. employers added a stronger-than-expected 256,000 jobs in December. Economists were expecting hiring to increase by 153,000.