2026.2.11 US Market Close | Market diverges on earnings as strong jobs report weighs

On February 11, US markets closed mixed as a stronger-than-expected jobs report pushed back expectations for Fed rate cuts. Amid broad market pressure, it was a day of sharp divergence between stocks with clear growth drivers, like those in Artificial Intelligence (AI), and companies that reported weak earnings. Major Indices - S&P 500: Down 0.005% - Finished virtually flat as pressure from the strong jobs report was offset by individual company earnings. - Dow Jones: Down 0.13% - Edged lower amid concerns over delayed Fed rate cuts. - Nasdaq 100: Up 0.29% - Closed higher, led by AI-related tech stocks in a market driven by earnings differentiation. Key Issues - Stronger-than-expected jobs report: Nonfarm payrolls in January increased by 130,000, significantly surpassing the forecast of 70,000. The higher-than-anticipated growth in average hourly earnings also dampened hopes for an early rate cut from the Fed. - Sharp divergence based on earnings: Amid macroeconomic uncertainty, a stock-picker's market emerged where companies with proven growth, such as AI stocks, surged, while those with disappointing earnings and outlooks plunged. - Rate cut expectations recede: Following the strong employment data, the probability of a March rate cut plummeted to below 8%, with the market now pricing in the first cut for June or later. The 10-year US Treasury yield rose to around 4.17%. - Focus shifts to upcoming key data: Market attention is now turning to the Consumer Price Index (CPI) report on the 13th and the FOMC minutes release on the 18th, which could lead to increased volatility. Key Stocks - Vertiv (VRT): Surged over 24% after raising its full-year 2026 guidance, citing strong demand from AI. - Lyft (LYFT): Plunged nearly 17% after reporting an unexpected operating loss and providing a weak first-quarter forecast. - Cloudflare (NET): Rose more than 5% on the back of a fourth-quarter earnings beat and a positive full-year outlook. - Mattel (MAT): Tumbled nearly 25% after a significant earnings miss, with holiday shopping season results falling far short of expectations.