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US markets traded in a tight range after a stronger January US jobs report pushed Treasury yields higher and forced traders to dial back near-term Federal Reserve rate-cut expectations. Stocks held early gains only briefly, as a sharp drop in software shares offset strength in semiconductors.
The S&P 500 stayed little changed late morning in New York, while the NASDAQ 100 edged up 0.2% and the Dow fell 0.4%. The Philadelphia Semiconductor Index rose 1.7%, but the iShares Expanded Tech-Software Sector ETF fell about 3%, pointing to continued pressure on software valuations. Bitcoin dropped about 3% to around $66,600, and Ether slid about 3.8% to near $1,930.
Employers added 130,000 jobs in January, and the unemployment rate fell to 4.3%, according to the US Bureau of Labor Statistics. The report arrived after a delay tied to the partial government shutdown, which left investors leaning heavily on the print to gauge whether the labor market had cooled.
Health care led hiring, adding 82,000 jobs, while social assistance gained 42,000 and construction added 33,000. At the same time, the federal government shed 34,000 jobs, and financial activities lost 22,000. The BLS also said payroll employment changed little in 2025, averaging about 15,000 jobs per month, which framed January’s gain as a step up from last year’s pace.
Bond markets reacted quickly. The 10-year Treasury yield rose to about 4.17%, while the two-year yield climbed to about 3.51%, showing lower expectations for early easing. Shorter maturities moved more, since they track policy expectations closely.
Money markets shifted the most likely timing for the next Fed cut to July from June, based on post-data pricing described in Bloomberg’s recap. Traders also priced fewer total cuts for 2026 after the report, as the stronger labor signal gave policymakers more room to wait for additional inflation evidence.
Equities showed a split reaction. Cyclical and industrial areas held up better, while software stocks extended a slide tied to concerns that new AI tools could weaken pricing power for some vendors. This rotation left the broad index flat, even as chip stocks outperformed.
Commodities and currencies also moved modestly. West Texas Intermediate rose about 1.5% to roughly $64.94 a barrel, while spot gold rose about 0.7% to around $5,060 an ounce as investors watched yields and the Fed path. The euro slipped to about $1.186, and the yen strengthened to around 153.55 per dollar, matching the broader “reprice, then rotate” tone after the jobs data.
Corporate Highlights
T-Mobile US reported fewer Q4 mobile subscriber additions than analysts hoped, highlighting challenges facing new CEO Srini Gopalan.
Kraft Heinz halted plans to split into two businesses, reversing course after hiring a new chief executive.
Shopify beat fourth-quarter estimates after strong holiday demand lifted revenue.
Humana forecast full-year profit below Wall Street expectations as costs and policy pressures weigh on the sector.
Ford Motor Co. said it expects profit to jump in 2026, even after a late-2025 tariff hit affected results.
Lyft issued weaker-than-expected guidance, pointing to slower traction from expansion and newer offerings.
Nike said it expects its wholesale business to strengthen globally as it speeds up product launches.
Robinhood Markets reported lower Q4 profit, citing the impact of cryptocurrency declines on results.
Moderna fell after US regulators declined to review its mRNA flu vaccine submission, a setback to pipeline expansion.
Samsung Electronics said it will launch new Galaxy smartphones on February 25 in San Francisco.
With strong jobs data pushing yields higher and delaying Fed cut expectations, markets are in a wait-and-watch mode as investors rotate within equities and reassess risk across stocks, bonds, and cryptocurrency.
Also Read: US Stock Market Today: Wall Street Stays Near All-Time Highs After Soft US Consumer Spending Data
