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US Job Growth Surprises: Stocks Fall, Rate Cut Hopes Diminish

by Michael Brown - Business Editor
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Wall Street Closes Lower After Unexpectedly Strong U.S. Jobs Report

U.S. Stock markets finished trading on Wednesday, February 11, 2026, with losses following a stronger-than-expected jobs report for January. The data has prompted a reassessment of expectations regarding potential interest rate cuts by the Federal Reserve.

The U.S. Economy added 130,000 jobs in January, exceeding analyst expectations. This figure indicates continued strength in the labor market, potentially giving the Federal Reserve less room to maneuver with interest rate adjustments.

The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all experienced mixed reactions during the trading day before ultimately closing lower. The market’s response reflects the complex interplay between positive employment data and concerns about persistent inflation.

The robust employment growth has led to a downward revision of forecasts anticipating interest rate reductions. Investors are now factoring in the possibility that the Federal Reserve may delay or reduce the scale of planned rate cuts, impacting borrowing costs and investment strategies.

The labor market’s strong start to 2026 suggests continued economic resilience, but also introduces uncertainty regarding the future trajectory of monetary policy. This development is being closely watched by investors and economists alike, as it could significantly influence market performance in the coming months.

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