Forestar Group Inc (FOR) shares are experiencing a decline today, primarily influenced by broader market reactions to the latest U.S. jobs report. Released at 8:30 a.m. EST, the report revealed that the U.S. added 256,000 jobs in December, significantly surpassing the consensus forecast of 155,000. This unexpected strength in the labor market has heightened concerns about the Federal Reserve's interest rate policy, as it suggests that the central bank may not be in a hurry to cut rates further. The bond market reacted with a selloff, pushing yields on the 10-year Treasury note to their highest level since late 2023, which in turn has put pressure on equities, including Forestar Group.
The broader market downturn is evident, with the Dow Jones Industrial Average dropping 0.8%, the S&P 500 falling 0.9%, and the Nasdaq Composite declining 1% shortly after the market opened. These declines reflect investor concerns that a robust labor market could delay the Federal Reserve's rate-cutting plans, thereby maintaining higher borrowing costs that can negatively impact corporate profit margins. As a result, growth stocks and those sensitive to interest rate changes, like Forestar Group, are facing downward pressure.
Forestar Group Inc's stock is currently trading at $25.20, down 2.04% from its previous close of $25.73.