The S&P 500 (^GSPC 1.52%) barely moved today, finishing at 6,941.47 as strong jobs data undermined with rate-cut hopes. The Nasdaq Composite (^IXIC 1.78%) fell 0.16% to 23,066.47, and the Dow Jones Industrial Average (^DJI 1.56%) eased 0.13% to 50,121.40.
Market movers
Robinhood Markets (HOOD 3.27%) fell 8.9% to $77.97 after yesterday’s after-hours Q4 revenue missed expectations. Energy bellwether Exxon Mobil (XOM +1.29%) rose 2.6% to $155.56 as investors look for safe havens and rotate out of tech stocks.
Aehr Test Systems (AEHR 11.40%), a leader in semiconductor testing, soared over 26% after announcing a significant order from a large-scale data center provider. Taiwan Semiconductor Manufacturing Company (TSM 4.96%) gained on the back of continued AI chip demand optimism.
What this means for investors
Jobs data surprised the markets today. January figures from the Bureau of Labor Statistics show unemployment fell to 4.3% and the U.S. added 130,000 new jobs. The positive news makes it more likely that the Fed will take a cautious approach to rate cuts in the coming months. The CME FedWatch tool now gives a 48% chance of cuts in June.
Software stocks continue to have a rocky ride, with the iShares Expanded Tech-Software Sector ETF (IGV 0.88%) dropping 2.55% today to $83.23. The fund is down 23.20% in the past six months as investors pull out of software service companies, fearing their products could be replaced by AI. Some see this as an opportunity: Jefferies (JEF 7.05%) analysts today highlighted historically low valuations and predicted a software rally.
