U.S. stocks traded mixed Thursday afternoon, with the Dow Jones Industrial Average grinding higher while the S&P 500 and Nasdaq Composite remained under pressure. The Dow hovered near 50,145, up roughly 23 points or 0.05%. The S&P 500 slipped about 28 points to 6,913, down 0.41%. The Nasdaq Composite fell 216 points to 22,850, a decline of 0.94%. The NYSE Composite outperformed, gaining about 18 points to 23,498.
Jobs Report Surprise Pushes Yields Higher
January nonfarm payrolls added 130,000 jobs, far above the forecast near 55,000. The unemployment rate ticked down to 4.3%, reinforcing a firm labor market. That resilience complicated hopes for imminent Fed rate cuts. Treasury yields on the 10-year note pushed into the 4.15%-4.18% range, pressuring rate-sensitive tech stocks while lifting financials and industrials tied to economic momentum.
Sector Rotation: Cyclicals Gain, Tech Falters
The rotation theme was visible across sectors. Energy and industrial shares showed relative strength, while parts of software and semiconductor segments struggled amid ongoing concerns about AI-driven disruption and stretched valuations. Individual stock moves amplified the divide. Applovin dropped sharply despite posting earnings above expectations. Cisco Systems declined after reporting revenue growth tied to AI demand but flagging cost pressures. On the upside, Novocure jumped following FDA approval for a cancer treatment device, and Vertiv and Globalfoundries advanced on earnings and forward guidance.
VIX Contained, Focus on CPI
Volatility remained contained. The Cboe Volatility Index (VIX) dipped to around 17.5, signaling only modest concern. The broader S&P 500 remains up modestly year to date, though leadership has broadened beyond mega-cap tech. Attention now turns squarely to Friday's Consumer Price Index (CPI) report. Economists expect annual inflation near 2.5%. A softer print could revive rate-cut speculation; a hotter reading may reinforce a higher-for-longer stance, potentially extending the rotation into cyclicals. Wall Street’s midday tone reflects a market repositioning in real time as fresh data reshapes expectations.