Wednesday's session on Wall Street ended with slight declines in the main indexes, and the Dow Jones ended a series of three consecutive days of growth, during which it set historical records. The latest US jobs report was in focus.
The Dow Jones Industrial dropped 0.13 percent at the close. and amounted to 50,121.40 points.
The S&P 500 did not change at the end of the day and amounted to 6,941.47 points.
The Nasdaq Composite fell 0.16%. up to 23,066.47 points
The Russell 2000 mid-cap index is down 0.38%. up to 2,669.47 points
The VIX index falls by 0.79%. up to 17.65 points
Software stocks, which were a key factor in last week's decline amid fears of artificial intelligence disruption, came under pressure again on Tuesday. Salesforce shares fell 4% and ServiceNow fell 5%.
In turn, stocks that would benefit from an accelerating economy, as well as those involved in the development of AI data centers, gained.
Following last week's decline in software stocks, brokerages came under pressure on Tuesday after startup Altruist's AI-powered tax planning features raised concerns in markets.
According to Nannette Hechler-Fayd'Herbe, director of investment strategy in the EMEA region at Lombard Odier, the sell-off in shares of software companies is exaggerated, creating buying opportunities for investors.
“There was a lot of concern that AI would revolutionize software companies, but we believe it actually empowers them, reduces coding times and streamlines workflows. For us, it was an opportunity to increase exposure in the market,” she said in an interview with Bloomberg TV.
Robinhood shares fell 9%. after the brokerage firm reported fourth-quarter revenue that fell short of Wall Street expectations.
Shares of Cloudflare, a provider of cloud solutions and network security, rose 5%. after better than expected annual and quarterly sales forecasts.
Moderna shares fell 3.5%. following the decision of the US Food and Drug Administration (FDA) not to consider the drug manufacturer's application for approval of the flu vaccine.
Lyft shares fell 17%. after the ride-hailing company's quarterly earnings forecast and annual ridership forecast fell short of Wall Street analysts' expectations.
Humana shares fell more than 3%. after the health insurer forecast 2026 profit lower than analyst estimates.
Mattel shares fell 25%. after the toy manufacturer published results for the holiday season, which turned out to be lower than analysts' estimates, and also published a forecast for 2026 assuming lower-than-expected profit.
The focus was on the latest labor market data, which turned out to be better than analysts' expectations.
“It's usually a good sign, but we're certainly not yet on track with the labor market. A better way to describe it is that we're moving in the right direction. The unemployment rate is gradually improving, but there are still many signs that the labor market remains extremely weak,” said Rick Wedell, CIO at RFG Advisory.
“In this environment, it is clear that we still have a long way to go before the labor market can be considered 'robust',” he added.
The number of new jobs in non-farm sectors in the United States increased by 130,000 in January. An increase of 65,000 was expected. In December, the number of new jobs increased by 48 thousand, after correction from +50 thousand. – reported the US Department of Labor (BLS). The two-month payrolls adjustment amounted to: -17 thousand.
The unemployment rate in the US in January was 4.3%, expected 4.4%. compared to 4.4 percent a month ago.
Hourly wages increased by 3.7% in January. y/y, and m/m increased by 0.4%. vs. consensus: 3.7 percent y/y and 0.3 percent mdm, compared to previously: 3.8 percent y/y and 0.1 percent mdm, after correction.
The number of jobs in the US private sector increased by 172,000 in January, while a month earlier it increased by 64,000, after a revision from 37,000. An increase of 68,000 was expected.
In January, a broader measure of the unemployment rate (U-6), more reflective of the U.S. labor market, was 8 percent. compared to 8.4 percent a month earlier.
Markets currently expect the US Federal Reserve to keep interest rates unchanged until July.
On the oil market, WTI contracts for March are up 1.56%. to USD 64.96 per barrel, and March Brent futures increase by 1.35%. up to USD 69.73/b. (PAP Business)
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