Market Summary: What Happened Yesterday and What Awaits Us Today (February 12)

Wall Street Between Strong Jobs and Interest Rate Pressures: Stocks Fall and Gold Jumps Amid Fed Expectations Recalibration

US stock indexes ended Wednesday’s session marginally lower as investors assessed stronger-than-expected labour market data alongside a wave of corporate earnings releases.

Figures from the Bureau of Labor Statistics showed the US economy added 130,000 jobs in January, comfortably beating expectations of around 55,000. The unemployment rate also edged down to 4.3% from 4.4% in December, defying forecasts that it would remain unchanged.

While the resilient labour market underscores economic strength, it has reinforced expectations that interest rates may stay elevated for longer. Reflecting this, the yield on 10-year US Treasury bonds rose to about 4.18%, up from below 4.15% in the prior session. According to CME Group’s FedWatch tool, markets now price a roughly 94% probability that the Federal Reserve will hold rates steady at its March meeting, compared with around 80% previously.

In equity markets, the Nasdaq slipped 0.2%, the Dow Jones Industrial Average eased 0.1%, and the S&P 500 closed broadly flat after the Dow had posted record highs in the previous three sessions. Technology stocks showed mixed performance: Nvidia and Tesla edged slightly higher, while Alphabet was among the weakest major tech names, falling 2.4%.

Individual stock movements were pronounced. Mattel dropped 25%, Lyft declined 17%, Robinhood fell 9%, and Humana lost over 3%. On the upside, Hinge Health surged 17%, Cloudflare and T-Mobile gained about 5% each, and Ford added nearly 2%.

In other markets, Bitcoin retreated to roughly $67,600 after briefly approaching $69,200 overnight. The US dollar index rose to 96.86. Gold climbed 1.6% to around $5,110 an ounce, silver jumped 4.5% above $84, and West Texas Intermediate crude rose 1.5% to near $65 per barrel.

Market Outlook

Investors are expected to remain focused on bond yield movements, which continue to drive short-term equity sentiment. Rising yields could weigh on growth and technology stocks, while financial and defensive sectors may benefit from a prolonged higher-rate environment.

Corporate earnings will remain a key catalyst, particularly any signals on profit margins or forward guidance. Continued economic resilience could reinforce the view that the Federal Reserve is in no rush to cut rates, potentially keeping markets range-bound and volatile as new economic data and Fed commentary emerge.