S&P 500 and Nasdaq: US Stocks Rally on Jobs Beat, Tech Stocks Face Resistance

Today’s Bureau of Labor Statistics’ January Non-Farm Payrolls report showed job growth of 130,000 last month, surpassing economists’ estimates of about 55,000. The report also showed a sizable increase from December, which was downwardly revised to 48,000.

The unemployment rate came in at 4.3%, below the 4.4% estimate. Average Hourly Earnings rose 0.4% month over month, higher than the 0.3% forecast.

The report served as good news for investors after yesterday’s weaker-than-expected retail sales report weighed on sentiment.

Yields and Dollar Reverse as Strong Jobs Data Shifts Sentiment

The employment news also boosted Treasury yields and the U.S. Dollar, reversing earlier losses.

With the labor market news out of the way, investors will have two trading days to shake off the recent negativity caused by worries over the software sector. On Tuesday, shares of several financial services companies were hit with a wave of selling after Altruist launched a new AI-powered tax planning tool.

Rotation Continues: Dow Leads as Old Economy Stocks Surge

On the opening, the strength remains in the Dow as investors continue to rotate into “Old Economy” stocks, putting the tech-weighted Nasdaq in a relatively weak position. The S&P 500, which is comprised of a little of both old economy and high-risk technology, has been strengthening nonetheless.