"U.S. financial markets ended the week on a cautious note as investors weighed strong employment data against growing concerns about the impact of artificial intelligence on traditional business models. Major stock indexes declined, led by technology-heavy shares, reflecting worries that rapid AI developments may disrupt established industries and earnings outlooks. The Nasdaq Composite recorded the steepest losses, while the S&P 500 and Dow Jones Industrial Average also finished lower. Value-oriented stocks continued to outperform growth stocks, extending a trend that has persisted for several weeks."
"The January employment report showed that U.S. employers added 130,000 jobs, the strongest monthly increase in over a year. The unemployment rate also declined slightly to 4.3%. Job growth was concentrated in healthcare, social services, and construction. While the strong labour market reflects economic resilience, it reduced expectations for near-term interest rate cuts by the Federal Reserve. Investors now believe rates are more likely to remain elevated for longer."
U.S. major indexes closed lower, led by technology-heavy shares and the Nasdaq Composite. Value-oriented stocks continued to outperform growth stocks for several weeks. The January employment report showed employers added 130,000 jobs, the strongest monthly increase in over a year, and the unemployment rate fell to 4.3%. Job gains were concentrated in healthcare, social services, and construction. Strong labour market readings reduced expectations for near-term Federal Reserve rate cuts and raised the likelihood of sustained higher rates. Consumer prices rose more slowly in January while retail sales stalled. U.S. Treasury prices rose as investors sought stability amid equity volatility. European markets ended near flat, the STOXX 600 reached a record high, and the eurozone expanded 0.3% in the final quarter of 2025 with annual growth of 1.5%, led by Spain.
Read at London Business News | Londonlovesbusiness.com
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