United States benchmark averages ended slightly lower on Wednesday (Thursday AEDT), with the Dow Jones Industrial Average snapping a three-day winning streak as a stronger-than-expected January jobs report failed to generate sustained buying momentum.
The Dow fell 66.7 points or 0.1% to close at 50,121.4. The S&P 500 finished virtually unchanged at 6,941.5, while the Nasdaq Composite declined 36.0 points or 0.2% to finish at 23,066.5.
Data from the Bureau of Labor Statistics showed nonfarm payrolls (NFP) rose by 130,000 in January, well above the 70,000 increase expected. The figure also represented a notable improvement from December, which was revised lower to 48,000.
The unemployment rate came in at 4.3%, slightly below expectations of 4.4%.
Although the headline reading marked the strongest pace of job creation in more than a year, hiring remained concentrated in a narrow group of industries.
Health care-related sectors accounted for 124,000 of the total positions added, roughly double the typical monthly growth seen in 2025.
Investors also remained mindful of persistent downward revisions to prior data. Every month in 2025 has been revised lower, and after incorporating annual benchmark adjustments and monthly revisions, average job growth last year stood at just 15,000 per month.
ANZ analysts said in a note: "The data fit with the current Fed narrative that the labour market is showing some signs of stabilising and that the FOMC can afford to be patient regarding future interest rate reductions.
"Attention now turns to the January CPI inflation report due Friday. However, it was not all good news on the labour market and one month’s strong data – which are normally subject to significant downward revisions – does not change the reality that the labour market has slowed significantly.
"2025 jobs growth was revised down to 181k vs 584k previously, a paltry 15k per month. The six-month average of NFP is 7k. The annual benchmark revisions for NFP jobs in March 2025 saw a downward adjustment of 898k.
"Outside of the January NFP print, monetary policy looks overly restrictive, at least as far as the jobs market is concerned."
The labour market data followed weaker-than-expected retail sales figures released a day earlier, which showed December spending was flat, undershooting forecasts for a 0.4% monthly increase.
Technology and software shares, already under pressure amid concerns about artificial intelligence-driven disruption, declined again.
Salesforce dropped 4.4%, and ServiceNow fell 5.5%. Microsoft slid 2.2%, making it the largest drag on the S&P 500, while Alphabet lost 2.4%.
Brokerage firms extended recent losses after fintech start-up Altruist unveiled AI-enabled tax-planning features.
Charles Schwab dipped 3.8% and Ameriprise Financial fell 3.9%, while LPL Financial slid 6.1%.
Robinhood shares tumbled 8.9% after the retail brokerage missed fourth-quarter revenue expectations, leading declines within the financial services index.
In contrast, stocks positioned to benefit from stronger economic growth and investment in artificial intelligence infrastructure advanced.
Digital infrastructure provider Vertiv surged 24.5% after reporting a fourth-quarter earnings beat and issuing a robust 2026 outlook.
Caterpillar gained 4.4%, GE Vernova added 4.2%, and Eaton finished 4.9% higher.
On the bond markets, yields moved higher, with the 10-year Treasury yield rising 0.8% to 4.1725% and the 2-year yield climbing 1.7% to 3.512%.
