Wall Street's most watched gauge of investor anxiety rose to a three-week high on Friday as stock indexes sold off following a an upbeat jobs report that pushed back market expectations for further Federal Reserve interest rate cuts.

Anything above 200,000, and the S&P 500 Index is seen dropping about 1%, according to Goldman Sachs. A JPMorgan Chase & Co. trading desk note sees the gauge as poised to potentially fall by 0.5% to 1% if the print is above 220,000.

Good news for the U.S. economy is back to being bad for Wall Street as the S&P 500, Dow Jones industrial average and Nasdaq all post losses.

The Cboe Volatility Index (VIX) - widely seen as Wall Street's fear and volatility gauge - soared about 9% on Friday to a three-week-high, after the latest job market update led to a big recalibration in Federal Reserve rate cut expectations.

Two Morgan Stanley analysts have outlined bull-case target prices that imply substantial upside for Datadog and Arm shareholders in 2025. Datadog is a leader in observability software, a market that should grow quickly as businesses become more dependent on artificial intelligence.

U.S. stocks tumbled, with the S&P 500 erasing its 2025 gains, after an upbeat jobs report stoked fresh inflation fears and reinforced bets that the Federal Reserve will be cautious in cutting interest rates this year.

Investors appeared to have entered the new year with cautious footing, with uncertainties around future Fed rate cuts and policies under the upcoming Trump administration. Thursday marked the first day for the market in 2025 and ended with the benchmark index in red.

In other words, history says the Nasdaq could advance 16% in 2025, but most Wall Street analysts see even more upside in Nvidia ( NVDA -0.02%) and Lam Research ( LRCX -0.62%), two companies that reset their soaring share prices by completing 10-for-1 stock splits in 2024.