Uber Surges While Amazon and Tesla Drag Markets Lower

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The U.S. stock market closed lower on Friday as inflation concerns and weaker-than-expected job growth weighed on investor sentiment. The S&P 500 and Nasdaq both fell by 0.5%, while the Dow Jones Industrial Average dipped 0.2%.

A key driver of market anxiety was the latest University of Michigan survey, which revealed that consumers expect inflation to rise to 4.3% over the next year—the highest projection since 2023.

Meanwhile, the U.S. economy added 143,000 jobs in January, missing forecasts of 168,000, though the unemployment rate declined slightly to 4.0%.

Biggest Stock Market Movers

Winners:

• Uber Technologies Inc. (UBER) +9.6%
  Uber’s stock skyrocketed after hedge fund Pershing Square, led by Bill Ackman, disclosed a significant stake in the ride-hailing company. Investors viewed this as a strong endorsement of Uber’s long-term profitability.
• Affirm Holdings Inc. (AFRM) +23%
  The buy-now-pay-later giant reported earnings that exceeded Wall Street’s expectations, with an expanding customer base and strong revenue growth.
• Expedia Group Inc. (EXPE) +9.1%
  The online travel company impressed investors with strong earnings and a return to quarterly dividends, signaling confidence in future profitability.
• Take-Two Interactive Software Inc. (TTWO) +5.2%
  Shares of the gaming company rallied after management reassured investors about the anticipated release of Grand Theft Auto VI later this year.

Losers:

• Amazon.com Inc. (AMZN) -4%
  Despite strong fourth-quarter earnings, Amazon’s stock tumbled after it issued a weaker-than-expected revenue forecast for the first quarter. Concerns about slowing growth in cloud services also contributed to the decline.
• Tesla Inc. (TSLA) -1.3%
  Tesla’s stock continued to face pressure amid weaker sales figures and concerns about increased competition in the EV market.
• e.l.f. Beauty Inc. (ELF) -25%
  The cosmetics brand suffered its worst trading day in years after lowering its fiscal outlook, citing sluggish January sales.
• Neurocrine Biosciences Inc. (NBIX) -19%
  The biopharmaceutical company slumped after providing underwhelming guidance for sales of its key neurological drug, Ingrezza.

Market Outlook

With inflation concerns resurfacing and job growth missing expectations, investors remain on edge about the Federal Reserve’s next move. The market will be closely watching upcoming inflation data and corporate earnings reports to gauge the direction of stocks in the coming weeks.

Meanwhile, oil and gold prices ticked higher, while the U.S. dollar strengthened against the euro but weakened against the Japanese yen. Cryptocurrency markets also saw moderate gains, reflecting continued investor interest in digital assets.

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