04:37 PM EST, 01/10/2025 (MT Newswires) -- US benchmark equity indexes dropped Friday, while Treasury yields soared as traders parsed official data showing that the economy added more jobs than expected in December.

The Dow Jones Industrial Average fell 1.6% to 19,161.6, the Nasdaq Composite dropped 1.6% each to 41,938.5 and the S&P 500 lost 1.5% to 5,827. Real estate and financials posted the biggest drops among sectors. Energy was the sole gainer.

US stock markets were closed Thursday to mourn the passing of former President Jimmy Carter.

For the week, the Nasdaq declined 2.3%, while the Dow and the S&P 500 both shed 1.9%.

In economic news, total US nonfarm payrolls rose by 256,000 last month, the Bureau of Labor Statistics reported. The consensus was for a 165,000 increase, according to a survey compiled by Bloomberg.

"This was a robust employment report that reinforces the resilience of the US labor market and expansion and will keep the (Federal Reserve) on hold in January as they try to bring inflation pressures down," BMO Capital Markets said.

Markets are widely expecting the central bank's Federal Open Market Committee to leave interest rates unchanged later this month, according to the CME FedWatch tool.

US consumer sentiment is down this month as year-ahead inflation expectations hit the highest since May, preliminary results from the University of Michigan's Surveys of Consumers showed.

Consumers' five-year inflation outlook increased to 3.3% from 3%, marking the third time in the past four years that the metric has posted such a large one-month change, according to the report.

The US two-year yield jumped 12.1 basis point to 4.38%, while the 10-year rate gained 8 basis points to 4.76%.

In company news, Constellation Brands ( STZ ) shares tumbled 17%, the biggest drop on the S&P, as the beer and wine company lowered its annual sales outlook after fiscal Q3 results missed Wall Street's expectations.

Walt Disney's ( DIS ) ESPN ( DIS ), Fox (FOX, FOXA), and Warner Bros. Discovery ( WBD ) said they will not launch their planned Venu Sports streaming service. Warner Bros. shares fell 3.6%, Disney ( DIS ) lost 1% and Fox shares dropped 1.6%.

Constellation Energy ( CEG ) agreed to acquire closely held power producer Calpine for $26.6 billion in cash, stock and assumed debt. Constellation Energy's ( CEG ) shares soared 25%, the largest decline on the Nasdaq and the second-biggest on the S&P.

Walgreens Boots Alliance ( WBA ) shares surged 28%, the top gain on the S&P, after the drugstore chain logged better-than-expected fiscal Q1 results, buoyed by sales growth across divisions. The company reiterated its full-year earnings outlook amid a challenging US retail environment.

West Texas Intermediate crude oil jumped 3.7% to $76.63 a barrel as the US Department of the Treasury announced further sanctions against Russia by targeting its oil production and exports. This may boost demand from producers in the Middle East, led by Saudi Arabia, Saxo Bank said.

Gold increased 1.1% to $2,719.70 per troy ounce, while silver advanced 1% to $31.32 per ounce.