Traders work on the floor of the New York Stock Exchange (NYSE) on February 9, 2026 in New York City.
Spencer Pratt | Getty Images
of Dow Jones Industrial Average It fell on Wednesday after a better-than-expected January jobs report failed to spark sustained progress, ending its winning streak in three days.
The blue chip index fell 66.74 points (0.13%) to close at 50,121.40. of S&P500 It fell less than 1 point to 6,941.47. of Nasdaq Composite It fell 0.16% to end at 23,066.47.
The Bureau of Labor Statistics’ nonfarm payrolls report for January, which was delayed as the partial government shutdown ended on Feb. 3, showed payroll growth of 130,000 people last month. Economists polled by Dow Jones had expected a rise of $55,000. The latest figure was also a significant increase from December, when the number was revised downward to 48,000.
The unemployment rate was also 4.3%, slightly lower than the Dow Jones Industrial Average’s forecast of 4.4%.
Although the report showed the largest job increase in more than a year, growth remained concentrated in a few sectors (mainly health care), with a total of 124,000 jobs added. This was double the normal growth rate from 2025. In addition, concerns remain about a downward correction in the labor market, especially after the decline in adjustment in each month of 2025. The average monthly job growth last year, which combines annual benchmark revisions and monthly movements throughout the year, was just 15,000.
“As you can imagine, this is generally a good sign, but we’re certainly not out of the woods yet in terms of the labor market. ‘Moving in the right direction’ would be a better term. Unemployment rates are gradually improving, but there are still many signs that the labor market remains extremely weak,” said Rick Wedell, chief information officer at RFG Advisory, citing low turnover rates as one example.
He added: “In this environment, it is clear that there is still a long way to go before the labor market can be considered ‘robust’.”
U.S. Treasury yields initially spiked following the report, as it fueled investor optimism that the economy was strong. At session highs, the Dow rose more than 300 points, or 0.6%, the S&P 500 rose 0.7% and the Nasdaq rose 0.9%. But that enthusiasm may have cracked as the probability of a rate cut by the Federal Reserve has declined.
The jobs report comes after Tuesday’s consumer data was weaker than expected. According to the report, consumer spending was flat in December, falling short of the 0.4% month-on-month increase expected by economists compiled by Dow Jones.
“After a long period of forecasters presenting a lukewarm outlook for the economy based on a weakening labor market, this publication provides solid data points on the dimensions of solid economic growth, an improving labor market, and wage growth that can support consumer spending,” said Brad Smith, portfolio manager at Janus Henderson Investors. “The Fed will factor this into its calculations next month when deciding whether to hold interest rates steady. Given its data-driven wait-and-see attitude, this will firmly tip the balance toward keeping rates on hold.”
Software stocks, a major driver of last week’s selloff, came under pressure again on Tuesday amid concerns about disruption from artificial intelligence. sales force Although it decreased by 4%, ServiceNow It fell by 5%. of iShares Enhanced Technology Software Sector ETF (IGV) It fell more than 2% and is nearly 30% below its 52-week high. The fund entered bear market territory last month.
On the contrary, stocks that benefit from economic acceleration and stocks related to construction of AI data centers rose. Digital infrastructure provider stocks Vertive Shares rose 24% after the company reported higher fourth-quarter profits and issued strong outlook for 2026. In addition, the following caterpillar, GE Vernova and Eaton All sessions were ranked high.
—CNBC’s Jeff Cox contributed reporting
