The Labor Department reported 130,000 new jobs last month, far above economist forecasts and sharply higher than December’s downwardly revised figure. The unemployment rate fell to 4.3% from 4.4%, easing fears of a sudden labor market slowdown. That data helped steady investor confidence but also complicated the outlook for Federal Reserve rate cuts in 2026.
At the same time, corporate earnings drove sharp stock-specific moves. Technology, energy, crypto-linked stocks, and leveraged ETFs all saw heavy trading volumes. Commodity prices were mixed, with oil slipping and natural gas climbing more than 4%.
Markets now turn their focus to Friday’s Consumer Price Index (CPI), which could determine whether inflation is cooling enough for the Federal Reserve to cut interest rates later this year.
Why is the US stock market up today?
The main driver behind today’s stock market rally is the stronger-than-expected U.S. jobs report.
The addition of 130,000 nonfarm payroll jobs signaled that the economy remains resilient. Many investors had feared weaker hiring after months of “no hire, no fire” trends. Instead, the labor market proved steadier than expected.
That reduces immediate recession concerns. But it also raises questions about how quickly the Federal Reserve will cut interest rates. A strong labor market can keep inflation pressures alive. If inflation remains elevated, the Fed may delay rate cuts. This creates a delicate balance. Investors want economic strength without renewed inflation. That is why Friday’s CPI report is now critical for Wall Street.
Dow Jones, S&P 500 and Nasdaq performance
The Dow Jones Industrial Average climbed nearly 300 points. The index briefly traded even higher intraday before settling into a steady gain.
The S&P 500 Index rose 25.61 points to 6,967.08. Defensive sectors and select tech names supported the move.
The Nasdaq Composite, heavily weighted toward technology stocks, added 79.61 points to close at 23,146.07. Semiconductor and AI-related shares helped lift the index.
Market breadth was mixed. Gains were moderate rather than broad-based. Traders remain cautious ahead of inflation data.
Top stock market movers today: Nvidia, Intel, Cisco, McDonald’s
Individual stocks saw sharper action than the indexes.
NVIDIA Corporation traded higher at $190.05, up 0.8%, with massive volume of 144 million shares. Investors continue to favor AI and semiconductor exposure.
Intel Corporation rose 2.46% to $48.29, rebounding as chip stocks saw renewed buying interest.
Cisco Systems fell 7% after issuing disappointing forward guidance. Investors reacted negatively to weaker revenue expectations in its networking hardware business.
McDonald’s rose 1% after beating earnings estimates. The stock initially wavered but turned positive as investors focused on stronger-than-expected profits.
Outside large caps, Transocean surged over 10%, while Ford Motor Company gained more than 2%.
On the downside, Unity Software dropped 26% following earnings disappointment. Robinhood Markets fell nearly 9%, and Lyft declined 17% amid profit concerns.
Commodities today: Oil dips, natural gas surges, gold slips
Energy markets were mixed. WTI crude oil traded at $64.28 per barrel, down 0.54%. Brent crude slipped 0.67% to $67.79. Oil prices remain under pressure due to global supply concerns and slowing demand forecasts.
Natural gas jumped 4.31% to $3.29, one of the strongest commodity moves of the day.
Gold declined 0.28% to $5,084.30, while silver fell 1.11%. Precious metals eased as bond yields stabilized following the jobs report.
ETF market movers: SOXL jumps, TQQQ gains, BITO dips
Leveraged ETFs saw heavy trading.
Direxion Daily Semiconductor Bull 3x Shares (SOXL) surged 7.44% to $68.05, tracking gains in semiconductor stocks.
ProShares UltraPro QQQ (TQQQ) gained 0.74%, reflecting strength in Nasdaq stocks.
Meanwhile, ProShares Bitcoin ETF (BITO) fell 1.79%, even as Bitcoin prices moved higher. Leveraged inverse silver ETF ZSL dropped nearly 9%.
These ETF flows highlight active short-term trading and hedging strategies ahead of inflation data.
Bitcoin and crypto market today: Bitcoin, Ether and XRP rise
Cryptocurrency markets were broadly higher. Bitcoin traded at $67,813, up 1.41%. Ether gained 2.28% to $1,982.68. Litecoin and XRP also posted gains above 1%.
The Nasdaq Crypto Index rose 1.08% to 3,261.12. Crypto strength reflects continued investor appetite for risk assets, even as broader equity markets remain cautious.
Federal Reserve outlook: What Friday’s CPI means for interest rates
The Federal Reserve now faces a complex backdrop.
A strong jobs report reduces recession risk. But it may slow the pace of interest rate cuts if inflation does not cool.
Investors are closely watching the Consumer Price Index. A softer CPI reading could revive hopes for multiple rate cuts. A hotter reading could push yields higher and pressure stocks.
The Fed’s dual mandate requires stable prices and maximum employment. The labor side appears stable. Inflation remains the key question.