Wall Street slides as strong January jobs report fails to calm growth fears
U.S. stocks fell on February 11 as investors reacted to mixed economic signals. Despite stronger-than-expected January job growth and a lower unemployment rate, sharp downward revisions to 2025 employment data raised concerns. Rising Treasury yields pressured tech stocks, while gold and silver surged. Markets now await upcoming inflation data for Fed policy direction.
Market crashes
US markets ended lower on February 11, despite strong hiring data for January. The Dow Jones Industrial Average fell 188.90 points, or 0.38%, to close at 49,999.24. This pushed the index below the important 50,000 level. The S&P 500 dropped 27.06 points, or 0.39%, to 6,914.75. The Nasdaq Composite declined 192.48 points, or 0.83%, to 22,909.99. Technology and growth stocks saw higher selling pressure during the session.
Unemployment rate
The US economy added 130,000 jobs in January 2026. This was higher than market expectations of 75,000 jobs. The unemployment rate fell to 4.3%, slightly better than forecasts. However, the Bureau of Labor Statistics revised its 2025 job data sharply lower. The agency now says the economy added only 181,000 jobs in all of 2025. Earlier reports had estimated 584,000 jobs. This means average monthly job growth last year was about 15,000, much lower than previously believed. Most of the job gains were in the health care sector. Other sectors showed weak hiring.
Fed and interest rates
After the jobs report, US Treasury yields moved higher. Stronger hiring can lead to expectations that the Federal Reserve will keep interest rates high for longer. Higher yields increase borrowing costs and reduce the appeal of stocks, especially technology companies. This added pressure on the Nasdaq Composite and other growth-heavy indexes.
Different companies
Several companies saw steep declines. Unity Software fell more than 34% to $19.13. Investors are concerned about competition from new AI tools that could affect its business model. Robinhood Markets dropped 12.78% to $74.66. The Nasdaq Crypto Index fell 3.72%, and Bitcoin declined to $66,227. Lyft also fell 15.67% due to concerns about consumer spending and rising insurance costs.
Metals' prices rise
While stocks fell, gold prices rose 1.12%to $5,087.10. Silver gained 3.91% to $83.53. Investors often move to precious metals during periods of market uncertainty. Markets are now waiting for upcoming inflation data. The next Consumer Price Index report will give more clarity on the Federal Reserve’s policy path.