Stocks Slide After Weak Jobs Data as Bonds Climb: Markets Wrap
(Bloomberg) — The weeklong selloff engulfing technology stocks and cryptocurrency showed no sign of slowing, as weak hiring data exacerbated a rout spurred by concern over the impact of artificial intelligence on software valuations. Alphabet Inc. became the latest tech giant to slide after reporting earnings, while Bitcoin took one of its biggest tumbles yet in a plunge that has cut its value nearly in half since October.
Equities extended their slide from the brink of a record, with the S&P 500 falling about 1.5% and set for its worst three-day rout since April. The slide in software firms, chipmakers and all things related to artificial intelligence coincided with persistent fears about whether massive investments on the technology that has powered the bull market will pay off.
A clear example was the reaction to results from Google’s parent, which sank 5% after outlining an ambitious spending plan even as revenue beat estimates. Microsoft Corp. was hit with a rare analyst downgrade, in the latest sign of caution toward software companies. All eyes will be Amazon.com Inc.’s cloud business when it reports earnings later Thursday.
“It’s been a tough week for investors who were heavily exposed to the parts of the market that led the upside,” said Mona Mahajan at Edward Jones. “Technology and AI come to mind, but more recently we’ve also seen gold and precious metals sell off, as well as Bitcoin and the broader crypto space.”
While bets on economic resilience have recently fueled gains in companies that tend to benefit from improving growth prospects, the latest data underscored the uneven labor market characterized by limited numbers of overall dismissals and lackluster hiring. t the same time, Fed policymakers contend the unemployment rate is showing “some signs of stabilization.”
US job openings unexpectedly fell in December to the lowest level since 2020 and layoffs edged up. Companies announced the largest number of job cuts for any January since the depths of the Great Recession in 2009, according to data from Challenger, Gray & Christmas Inc. Menatime, jobless claims rose more than forecast last week.
The latest labor-market data has overall “shifted the tone” in the market and “dimmed expectations” for next week’s official jobs report, according to Ian Lyngen at BMO Capital Markets.
“I think low hiring and low firing conditions in the labor market are likely to persist,” said Angelo Kourkafas at Edward Jones. “While the labor market is cooling, incomes remain supported by wage growth that continues to outpace inflation. We do not see clear catalysts for large-scale layoffs, given strong corporate profitability.”
On the other side on the Atlantic, the European Central Bank kept interest rates unchanged as officials assess the economic toll of a rally in the euro and renewed trade unpredictability. The Bank of England came within a vote of cutting interest rates and predicted inflation will fall below its target, a closer-than-expected decision that revived hopes of a move next month.
The S&P 500 fell 1.4%. A gauge of tech megacaps and a closely watched exchange-traded fund tracking software makers each dropped about 3%. A key measure of chipmakers lost 1.2%.
Bitcoin tumbled 7.3% to $67,314.35. The yield on 10-year Treasuries slid six basis points to 4.21%. The dollar added 0.2%.
Corporate Highlights:
Qualcomm Inc. and Arm Holdings Plc delivered quarterly reports, hurt by concern that a shortage of memory chips will crimp growth in the electronics industry. Peloton Interactive Inc. provided a weaker-than-expected revenue forecast for the fiscal third quarter, disappointing investors who hoped a recent hardware revamp would spur a long-promised turnaround. ConocoPhillips is forecasting a cut to its crude production this year as oil prices slump and prime drilling sites in US shale fields grow scarce. Ralph Lauren Corp.’s sales growth decelerated in the most recent quarter, a sign that the company’s accessible luxury apparel is losing momentum with cautious shoppers. Estée Lauder Cos.’s outlook boost failed to reassure investors about the pace of the cosmetics conglomerate’s turnaround. Bristol Myers Squibb Co. forecast 2026 sales and profit above Wall Street’s expectations, a sign that the company’s newer medicines are helping stem the losses from its older drugs that are losing patent protection. Hims & Hers Health Inc. launched a cheaper copycat version of Novo Nordisk A/S’s new weight-loss pill. Cigna Group set the floor for its 2026 earnings outlook shy of Wall Street expectations as the health-care conglomerate revamps its drug benefit plans, a move the company has warned will drag on profits. Hershey Co. offered a better-than-expected 2026 outlook, saying higher prices and new products would bolster the candymaker’s performance. Bank of America Corp. — aiming to double the profit it makes from consumers — is revamping its approach to credit cards as the lender embarks on a plan to meet one of its most audacious financial targets set last year. KKR & Co. reported a drop in fourth-quarter profit, missing Wall Street estimates, as asset sales declined and the firm took a charge for one of its private equity funds in Asia. Crypto exchange Gemini Space Station Inc. said it plans to cut up to 25% of its workforce and wind down operations in the UK, European Union and Australia, citing a strategy to reduce costs and improve profitability. Rio Tinto Group said it’s walking away from talks to acquire Glencore Plc, scuttling a potential mega-merger that could have created the world’s largest mining company after the two sides failed to agree on valuation. Barrick Mining Corp. plans to spin off its top North American gold assets in an initial public offering later this year as part of a strategic reset by the Canadian metals producer. Shell Plc profits slumped in the fourth quarter, undershooting expectations as lower crude prices and a struggling chemicals business dented earnings. Spanish lender BBVA SA reported higher provisions in key markets such as Turkey and Mexico in the fourth quarter. BNP Paribas SA beat expectations and raised some targets, boosting Chief Executive Officer Jean-Laurent Bonnafe and his plan to prop up a lender that has long lagged peers. HSBC Holdings Plc is preparing to hand some bankers little or zero bonuses as the 160-year-old British lender seeks to emulate its Wall Street rivals with a more hard-edged, “eat-what-you-kill” stance. Some units at UBS Group AG’s investment bank have seen their bonus pools rise by as much as 20% for 2025, people familiar with the matter said. A.P. Moller-Maersk A/S plans to cut jobs and focus on cost discipline this year as the container giant seeks to insulate its earnings against deteriorating freight rates with Red Sea routes reopening. Vodafone Group Plc grew more slowly than expected in Germany, its largest market, bucking expectations of stronger growth after bringing on 1&1 AG as a wholesale mobile customer. Elliott Investment Management has increased its stake in Toyota Industries Corp. again as the activist investor ramps up efforts to block the Toyota group’s bid to take the company private. Baidu Inc. announced plans to issue its first dividend alongside a three-year stock buyback program of as much as $5 billion, moving to reward investors who’ve endured a multiyear retreat in the Chinese search leader’s market value. Hon Hai Precision Industry Co.’s revenue surged in January, suggesting demand for Nvidia Corp. servers remains resilient during a global wave of AI development. Some of the main moves in markets:
Stocks
The S&P 500 fell 1.4% as of 10:49 a.m. New York time The Nasdaq 100 fell 1.6% The Dow Jones Industrial Average fell 1.3% The Stoxx Europe 600 fell 1.4% The MSCI World Index fell 1.4% Bloomberg Magnificent 7 Total Return Index fell 2.8% IShares Expanded Tech-Software Sector ETF fell 3.1% Philadelphia Stock Exchange Semiconductor Index fell 1.2% The Russell 2000 Index fell 1.2% S&P 500 Equal Weighted Index fell 1% Alphabet fell 4.5% Currencies
The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.2% to $1.1786 The British pound fell 0.9% to $1.3530 The Japanese yen was little changed at 156.75 per dollar Cryptocurrencies
Bitcoin fell 7.3% to $67,314.35 Ether fell 8.1% to $1,953.05 Bonds
The yield on 10-year Treasuries declined six basis points to 4.21% Germany’s 10-year yield declined two basis points to 2.84% Britain’s 10-year yield declined one basis point to 4.54% The yield on 2-year Treasuries declined seven basis points to 3.48% The yield on 30-year Treasuries declined five basis points to 4.87% Commodities
West Texas Intermediate crude fell 3.4% to $62.91 a barrel Spot gold fell 3.1% to $4,809.86 an ounce Xagusd Spot Exchange Rate – Price of 1 XAG in USD fell 17% to $73.02 ©2026 Bloomberg L.P.
