Nasdaq, Dow Slide Amid Strong January Jobs Data; Fed Cut Outlook Rises

U.S. stocks retreated from early gains on February 11, as the January nonfarm payrolls report surged past expectations: 130,000 jobs added, unemployment 4.3%, and revised 2025 payrolls at 181,000 (weaker than previously estimated 584,000). The Dow Jones Industrial Average (^DJI) closed below the flatline; the S&P 500 (^GSPC) rose 0.1%; and the Nasdaq Composite (^IXIC) declined after early gains. The stronger-than-anticipated labor data, dubbed the "Super Bowl of jobs reports," reinforces the case for maintaining the Federal Open Market Committee's (FOMC) current stance on interest rates. Market sentiment now favors a higher probability of no rate hikes through June, with over 40% pricing in a hold in the near-term. Traders continue to price in two potential cuts by year-end. Earnings season is under way, with McDonald's (MCD) scheduled to report after the close, and Kraft Heinz (KHC) pausing its spin-off plans. Cisco (CSCO) is set to release results as it competes with Nvidia (NVDA) in AI spending with a new networking chip.