Stock market today: Dow, S&P 500 waver, Nasdaq slides after January jobs report smashes expectations

February 12, 2026 - 03:15

A surprisingly strong January jobs report sent a ripple of uncertainty through Wall Street on Friday, leading to a mixed and wavering session for major indices. The data showed employers added a far greater number of positions than economists had forecast, underscoring the persistent resilience of the labor market.

This robust employment picture directly complicates the Federal Reserve's path forward. While a strong economy is positive, the blowout numbers bolster the case for the central bank to maintain its higher interest rate stance for longer, as it continues its battle to fully tame inflation. The immediate market reaction reflected this recalibration of expectations.

The technology-heavy Nasdaq Composite bore the brunt of the selling pressure, sliding notably as higher rates threaten the future earnings valuations of growth-oriented companies. The Dow Jones Industrial Average and the broader S&P 500 fluctuated between small gains and losses throughout the day, ultimately closing with little decisive movement as investors digested the implications. The session highlighted a market caught between the positives of economic strength and the looming prospect of sustained restrictive monetary policy from the Fed.