Dow 50,000 sets table for inflation data, delayed January jobs report

Wall Street looks to build on Friday's sharp turnaround as investors process software and crypto sell-off

Feb. 8, 2026 at 6:55am

Got story updates? Submit your updates here. ›

Wall Street will look to build on a dramatic Friday turnaround that saw the Dow Jones Industrial close above 50,000 for the first time, while a 2% daily rally in the S&P 500 and Nasdaq Composite indexes wiped away some of the pain felt earlier in the week. The delayed January jobs report is set to be released on Wednesday, while Friday will bring key inflation data.

Why it matters

The jobs report and inflation data will provide important insights into the health of the US economy and the Federal Reserve's path forward on interest rates. Investors will also be closely watching corporate earnings reports in the coming week.

The details

The Nasdaq logged its fourth straight losing week, falling nearly 3%, as investor concerns over AI-related disruption across software names predominated. The S&P 500 has also dropped in three out of the last four weeks. Both the Dow and S&P 500 are up for the year, while the Nasdaq forfeited its year-to-date gains. Economists expect 70,000 nonfarm payroll jobs were created in January, with the unemployment rate holding steady at 4.4%. The Consumer Price Index (CPI) report is expected to show prices rose 0.3% over last month and 2.5% over the prior year.

  • The delayed January jobs report is set to be released on Wednesday.
  • Friday will bring investors key inflation data, with the Consumer Price Index (CPI) report.

The players

Dow Jones Industrial

A stock market index that tracks 30 large publicly traded companies.

S&P 500

A stock market index that tracks 500 large publicly traded companies.

Nasdaq Composite

A stock market index that tracks over 3,000 stocks listed on the Nasdaq exchange.

Bureau of Labor Statistics (BLS)

A federal agency that collects, processes, analyzes, and disseminates essential statistical data to the American public, the U.S. Congress, other Federal agencies, State and local governments, business, and labor.

ADP

A leading provider of human capital management solutions, including payroll, talent, time, tax and benefits administration.

Got photos? Submit your photos here. ›

What they’re saying

“The low-hire, low-fire dynamic that has dominated the labor market for much of the past year continued to generally hold in December, with layoffs remaining low and unemployment actually declining slightly. But the small pockets of strength that had been buoying the market appear to be fading quickly.”

— Cory Stahle, senior economist at Indeed (email)

“Another day, another set of declines in popular financial assets. Unfortunately, there is nothing new about that. What is different this time ... is that [Thursday] is less about rotation than outright selling.”

— Steve Sosnick, chief strategist at Interactive Brokers (client note)

“Net net, I have never seen sentiment this negative in any group in my career. I think we're due for a vicious rally in software.”

— Michael Toomey, equity trader at Jefferies (note to clients)

“The key word for every tech release right now is 'CAPEX'. Investor fears have been inflamed ... about whether the extra dollar of spend is going to yield the earnings necessary to justify current valuations.”

— Kyle Rodda, analyst at Capital.com (client note)

“Bitcoin is now for normies. The post-election run-up in crypto was powered not by 'HODL'ers,' but by average investors ... who used ETFs to hop onto the momentum. When the momentum faded, they moved to metals. We're seeing the logical outcome of that wild rotation.”

— Steve Sosnick, chief strategist at Interactive Brokers (client memo)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This week's market volatility, with sharp declines in software and crypto stocks followed by a Friday rally, highlights the uncertainty and negative sentiment currently gripping Wall Street. Investors will be closely watching the upcoming jobs report and inflation data for clues on the economy's direction and the Federal Reserve's next moves on interest rates.