U.S. stocks are struggling in 2025, with the Dow Jones Industrial Average off to its worst start to a year since 2016, as markets on Friday reflected a greater chance of the Federal Reserve pausing interest-rate cuts at least until May.

Stocks dropped on Friday after a hot jobs report dampened Wall Street's expectations for more interest rate cuts from the Federal Reserve this year. The Dow Jones Industrial Average lost 696.75 points,

The Dow fell over 500 points on Friday morning after new job reports surpassed expectations, and the Federal Reserve indicated that interest rate cuts may be postponed. Additionally, inflation remains a concern and is anticipated to stay high.