Wall Street got the kind of macro backdrop investors typically celebrate—solid job growth and easing inflation — yet stocks struggled to gain traction as concerns over tech costs and margin pressure capped enthusiasm.<h2>January Jobs Report Beats Expectations</h2>The U.S. economy added 130,000 nonfarm payrolls in January, well above expectations of 70,000. Private employers accounted for 172,000 of those jobs, the strongest gain since December 2024. Government payrolls dropped by 42,000, the fourth consecutive monthly decline.The unemployment rate edged down to 4.3% from 4.4%, another positive signal. While the Bureau of Labor Statistics revised down prior payroll estimates by 898,000 jobs between April 2024 and March 2025, investors largely treated that adjustment as backward-looking.<h2>Inflation Cools Further, Bolstering Fed Cut Hopes</h2>Inflation also offered reasons to cheer. Consumer prices rose 2.4% year over year in January, down from 2.7% and below forecasts of 2.5%. That marked the lowest reading in eight months.Core inflation, which strips out food and energy, eased to 2.5%, the lowest since March 2021.There is growing room to expect additional interest-rate cuts ahead, with markets currently pricing in at least two reductions by year-end.Under normal circumstances, that combination would fuel a broad rally. This time, it failed to move the needle.<h2>Tech Drag Offsets Macro Tailwinds</h2>The S&amp;P 500 – as tracked by the SPDR S&amp;P 500 ETF Trust (NYSE:SPY) – finished the week little changed. Technology stocks lagged, pressured after Cisco Systems Inc. (NASDAQ:CSCO) posted weaker-than-expected margins.Tech industry leaders are citing higher costs for memory and storage products amid a global supply crunch, reviving concerns that AI infrastructure spending may compress profits across the software and hardware ecosystem.On Thursday, 10 tech giants wiped out over $500 billion in market capitalization in a single session. <h2>Ford Rallies Despite Earnings Miss</h2>In Detroit, Ford Motor Co. (NYSE:F) moved higher despite missing earnings estimates as the 2026 guidance outperformed expectations. The automaker posted revenue of $42.45 billion, above the $41.53 billion consensus estimate, though down 5% from a year earlier.&#34;Ford delivered a strong 2025 in a dynamic and often volatile environment,&#34; said Jim Farley, president and CEO of Ford.The automaker absorbed roughly $2 billion in losses tied to fires at a Novelis aluminum supplier plant in New York. It also faced a $2 billion net tariff headwind, including $1 billion in unexpected costs after delays in auto-parts tariff credits. Results included $15.5 billion in special charges linked largely to scaling back electric vehicle plans announced in December.Shares rallied for three straight sessions after the report and tested January highs. Farley also approved higher bonuses for 75,000 salaried employees, citing better vehicle quality.Image: Shutterstock

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Wall Street faced a paradoxical week with solid job growth and easing inflation, yet the S&P 500 remained flat due to tech sector weaknesses. The U.S. added 130,000 jobs in January, surpassing expectations, while inflation cooled to 2.4%. Despite this positive macro backdrop, tech stocks struggled, losing over $500 billion in market cap after Cisco's disappointing margins. Ford's shares rose despite missing earnings, buoyed by strong revenue and optimistic guidance. Overall, the market's response was muted amid concerns over tech costs and margin pressures.

- U.S. job growth exceeded expectations with 130,000 nonfarm payrolls added in January, while inflation eased to 2.4%, raising hopes for interest rate cuts.  
- Despite this positive macro backdrop, stock market enthusiasm was dampened, primarily due to tech stocks struggling with margin pressures and rising costs.  
- Ford Motor Co. saw a boost in shares despite missing earnings estimates, as improved guidance and strong revenue helped offset concerns surrounding special charges and losses.

Jobs Up, Inflation Down, Yet Stocks Barely Moved: This Week On Wall Street