US stocks finish mixed as Dow, S&P dip while Russell, Nasdaq 100 gain

US stocks closed mixed on Friday as investors processed a stronger-than-expected jobs report. The Dow, S&P 500 and Nasdaq each ended modestly lower, while the tech-focused Nasdaq 100 and the small-cap Russell 2000 recorded modest gains.

The robust labor report carries implications for both sides. On one hand, sustained hiring bolsters economic growth and corporate profits; on the other, it could prolong higher inflation and interest rates. This tension drove the day's divergent moves. The probability of a September rate increase rose to 57% from just over 50% ahead of the data.

President Trump stated that if the Federal Reserve fails to cut interest rates, he would cease trading with countries that run trade surpluses with the US.

The closing levels were:

• Dow: fell 272.05 points (−0.51%) to 53,419.33
• S&P 500: shed 29.09 points (−0.30%) to 7,718.61
• Nasdaq Composite: declined 77.07 points (−0.29%) to 26,506.99
• Russell 2000: added 7.38 points (+0.25%) to 2,975.65
• Nasdaq 100: gained 61.84 points (+0.21%) to 29,544.16

The divergence between the Nasdaq Composite and the Nasdaq 100 indicates that gains were mostly in mega-cap tech stocks, whereas the wider Nasdaq market stayed weaker. In contrast, the Russell’s rise suggests small-caps drew some buying support even with the outlook for higher interest rates persisting.