(Bloomberg) — Stocks and Treasury yields fell as a batch of employment data revived worries about an economic slowdown and technology shares extended loses. Bitcoin and silver tumbled.
Nasdaq 100 futures dropped 0.6% following an earlier advance of 0.7%, after the index wiped out its gains for the year over the prior two sessions. Alphabet Inc.’s blowout spending forecast lifted stocks tied to AI infrastructure such as Broadcom Inc., even though the Google parent slipped 4% in premarket trading. S&P 500 contracts fell 0.5%.
A report from outplacement firm Challenger, Gray & Christmas Inc. showed US companies announced the largest number of job cuts for any January since 2009. Meanwhile, initial jobless claims rose more than expected in the week through Jan. 31.
Treasuries rose across the curve, with the two-year yield tumbling five basis points to 3.51% as traders added to wagers for Federal Reserve interest-rate cuts. The dollar erased gains.
“The weak jobs data in the US is the clearest expression we have of the K-shaped economy,” said Joachim Klement, head of strategy at Panmure Liberum. “While the technology sector is booming, the rest is suffering from higher tariffs and a lack of demand. This creates the seemingly contradictory picture where GDP growth is solid but the job market is weak.”
Earlier on Thursday, traders were weighing whether the flight from tech has been excessive, driven by concerns over disruption from artificial intelligence, lofty valuations and vast capital outlays. Sectors that stand to gain from faster economic growth have been the main beneficiaries of the shift.
Silver plummeted as much as 17% as the commodity struggled to find a floor following a historic rout. Gold slipped toward $4,800 an ounce. Bitcoin slumped below $70,000, a level last seen in 2024 amid wider cross-asset stress.
“Three quarters of software stocks are in oversold territory, and the momentum trade that has been the way to play tech and software last year is under severe pressure,” said Andrea Gabellone, head of global equities at KBC Securities. “I expect reason to come back to the table and a rebound shortly, probably a selective one.”
What Bloomberg Strategists say…
“Signs of a softer US labor market have in recent months held back risk sentiment and sustained bets on further Fed interest-rate cuts in 2026. The latest data on Thursday only feeds speculation that the US economy isn’t out of the woods; that combined with lingering worry over the AI trade is giving traders plenty of reason to be cautious.“
— Kristine Aquino, Managing Editor, Markets Live. For the full analysis, click here.
The Bank of England came within a vote of cutting interest rates as policymakers split 5-4 in favor of holding at 3.75%. The pound extended losses after the decision, having been under pressure as a fresh round of political turbulence weighed on UK assets.
Shorter-end gilts jumped as traders ramped up bets on a rate cut in March, sending two-year yields eight basis points lower to 3.62%. The 10-year rate slipped three basis points to 4.52%.
The European Central Bank also stood pat on policy, leaving the deposit rate at 2% in a decision predicted by all economists in a Bloomberg survey.
Meanwhile, futures for the Russell 2000 index of small caps traded in line with those for the S&P 500. In a sign that appetite for diversification remained strong, the rolling four-week average inflows into consumer staple stocks have reached a record, according to Bank of America analysts.
These inflows hit the highest level on an absolute basis and by percentage of market capitalization since the bank started tracking client fund flow data in 2008, Jill Carey Hall, an equity and quant strategist, said in a Wednesday note.
“We don’t see it as a big plummet in tech stocks, we see it more as the rest catching up in terms of earnings,” Shanti Kelemen, co-chief investment officer at 7IM, told Bloomberg TV.
Corporate Highlights:
Barrick Mining Corp. named interim chief executive officer Mark Hill to lead the company as it announced plans to spin off its top North American gold assets in an initial public offering. Symbotic Inc.’s shares climbed 12% in premarket trading after the technology firm’s revenue forecast topped estimates. BNP Paribas SA’s stock rose after it beat expectations and raised some targets, boosting Chief Executive Officer Jean-Laurent Bonnafe and his plan to prop up a lender that has long lagged peers. Syngenta Group has started selecting banks for what may be one of Hong Kong’s biggest initial public offerings, according to people familiar with the matter. Alphabet Inc. topped projections for quarterly revenue and outlined an ambitious capital spending plan, far surpassing predictions. Shell Plc said its fourth-quarter profit slumped, undershooting expectations as lower crude prices, a weak oil-trading performance and a struggling chemicals business dented earnings. Some of the main moves in markets:
Stocks
S&P 500 futures fell 0.5% as of 8:38 a.m. New York time Nasdaq 100 futures fell 0.6% Futures on the Dow Jones Industrial Average fell 0.3% The Stoxx Europe 600 fell 0.7% The MSCI World Index fell 0.1% Currencies
The Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1812 The British pound fell 0.5% to $1.3592 The Japanese yen rose 0.2% to 156.55 per dollar Cryptocurrencies
Bitcoin fell 4.4% to $69,405.7 Ether fell 3.2% to $2,056.09 Bonds
The yield on 10-year Treasuries declined four basis points to 4.24% Germany’s 10-year yield was little changed at 2.85% Britain’s 10-year yield declined three basis points to 4.52% Commodities
West Texas Intermediate crude fell 2.3% to $63.66 a barrel Spot gold fell 2.2% to $4,855.72 an ounce This story was produced with the assistance of Bloomberg Automation.
–With assistance from Neil Campling, Rose Henderson and Levin Stamm.
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