U.S. stocks dropped on worries that good news on the job market may prove to be bad for Wall Street by keeping inflation and interest rates high. The S&P 500 fell 1.5% Friday.

The market outlook for 2025 sees U.S. GDP growing at a healthy rate, the stock market gains diversifying beyond the Magnificent Seven—with health care a likely winner—and an evolution in the AI sector that powered virtually all of last year’s rally.

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.

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