US indices close lower despite strong jobs data, focus now on inflation figures

The US stocks were quiet on Wednesday, with the Dow marginally declining, the S&P 500 remaining stable, and the Nasdaq slightly declining, despite the gains.After the widely followed nonfarm payrolls report revealed considerably greater than anticipated job growth in January and the unemployment rate dropped to 4.3%, the indices had got off to a solid start to the day, with the S&P 500 and Nasdaq reaching their best levels in over a week.

However, as traders reduced their wagers on Federal Reserve interest rate decreases, the gains waned.
The January Consumer Price Index inflation report, which is scheduled on Friday, will now be the main focus of investors.
Technology had a mixed bag of stock movements on Wednesday, with software stocks plunging to end three sessions of gains and chip stocks rising dramatically following last week’s sharp selloff caused by concerns about disruption from AI.Also Read: Asian shares rise, treasuries decline post US jobs data

The largest drag on the S&P 500 was Microsoft, which lost over 2%, followed by Alphabet, which lost about 2.5%.

Shares of Robinhood fell about 9%, leading falls in the financial services industry, after the retail brokerage failed to meet fourth-quarter revenue projections.

Additionally, despite missing fourth-quarter profit and sales projections, Generac, a manufacturer of power equipment, had its shares rise around 18%, giving it the largest percentage gain in the S&P 500.

However, the business stated that the demand from data-centre clients is still growing and that in the upcoming quarters, Generac’s backlog should be reduced by an increase in orders from hyperscalers.