U.S. Stocks Close Wednesday Down
The Dow Jones Industrial Average dropped 66.74 points (0.13 percent) to close at 50,121.4. The S&P 500 edged down 0.34 points to 6,941.47, while the Nasdaq Composite Index shed 36.01 points (0.16 percent) to finish at 23,066.47.
Energy and consumer staples led gains across eight of eleven S&P 500 sectors, surging 2.59 percent and 1.4 percent respectively. Financials and communication services suffered the steepest losses, tumbling 1.49 percent and 1.31 percent.
January's nonfarm payroll employment jumped 130,000—significantly exceeding analyst projections—while unemployment ticked down to 4.3 percent from December's 4.4 percent, the U.S. Bureau of Labor Statistics reported. Healthcare, social assistance, and construction sectors drove hiring gains, though federal government and financial activities shed positions.
Mark Malek, CIO at Siebert Financial, said "The immediate reaction was textbook: bond yields moved higher as traders recalibrated rate-cut expectations," adding "A stronger labor print buys the Fed time. For now, policymakers get a pass. There is nothing in this report that forces their hand toward immediate easing."
The CME FedWatch Tool now shows 94 percent probability the Federal Reserve maintains current rates at its March meeting—up sharply from approximately 80 percent Tuesday.
Rick Wedell, CIO at RFG Advisory, offered cautious optimism: "This is generally a good sign, as you'd expect, but we are certainly not out of the woods yet with respect to the labor market. 'Moving in the right direction' would be a better description," noting workers' persistently low quit rates signal ongoing employment uncertainty. "In this environment, it is clear that we still have a long way to go before the labor market can be considered 'solid.'"
Corporate earnings delivered volatile post-market reactions. Mattel and Lyft crashed nearly 25 percent and 17 percent respectively, while Zillow plummeted 17.13 percent following Tuesday's fourth-quarter earnings release.
Gainers included Hinge Health, which soared 17.54 percent. Cloudflare, T-Mobile, and Ford climbed 5.24 percent, 5.07 percent, and 2.06 percent respectively.
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