Weak Job Market Drives SPX Down, YTD Turn Negative as Volatility Hits 2026 High

Weak labor market indicators sparked broad selling in U.S. equities, sending the S&P 500 down 1.2% on February 5, 2026, and marking its first annual loss of the year. The index closed at 6,798.40, below its January 3, 2026, opening at 6,858.47, with nine of its 11 sectors turning negative for the year and a 0.88% YTD decline. The Dow Jones Industrial Average fell 1.2%, and the Nasdaq Composite declined 1.6%. The VIX volatility index reached a 2026 high at 21.77, signaling heightened uncertainty. The latest JOLTS report showed December job vacancies at 6.5 million, the lowest since 2020–2021, weighing on smaller-cap Russell 2000 and disrupting rotation trading. Gold and silver continued to weaken, with silver down 14% on February 5, and Bitcoin跌破 $63,000, off about half its 2025 high. If volatility persists, investors are shifting toward utilities, consumer staples, and U.S. Treasuries, with 131 billion dollars flowing into money market funds, while information technology shares entered a correction.