NEW YORK, Feb. 11 (Xinhua) -- U.S. stocks closed lower on Wednesday after the latest U.S. employment data showed stronger-than-expected job growth in January and dampened expectations for more Fed cuts.
The Dow Jones Industrial Average declined 66.74 points, or 0.13 percent, to 50,121.4. The S&P 500 slipped 0.34 points to 6,941.47. The Nasdaq Composite Index fell 36.01 points, or 0.16 percent, to 23,066.47.
Eight of the 11 primary S&P 500 sectors ended higher, led by energy and consumer staples with gains of 2.59 percent and 1.4 percent, respectively. Financials and communication services led the laggards, declining 1.49 percent and 1.31 percent, respectively.
According to the U.S. Bureau of Labor Statistics, total nonfarm payroll employment increased by 130,000 in January, way surpassing economist forecasts, while the unemployment rate edged down slightly to 4.3 percent from 4.4 percent. Job gains were concentrated in health care, social assistance and construction, while federal government and financial activities recorded losses.
"The immediate reaction was textbook: bond yields moved higher as traders recalibrated rate-cut expectations," said Mark Malek, CIO at Siebert Financial. "A stronger labor print buys the Fed time. For now, policymakers get a pass. There is nothing in this report that forces their hand toward immediate easing."
The CME FedWatch Tool showed the probability of the Federal Reserve holding interest rates steady at its March meeting rising to 94 percent from around 80 percent the previous day.
"This is generally a good sign, as you'd expect, but we are certainly not out of the woods yet with respect to the labor market. 'Moving in the right direction' would be a better description," said Rick Wedell, CIO at RFG Advisory, noting that the low quit rate continues to signal caution among workers. "In this environment, it is clear that we still have a long way to go before the labor market can be considered 'solid.'"
In corporate news, post-earnings reactions were mixed. Mattel and Lyft plunged nearly 25 percent and 17 percent, respectively. Zillow shed 17.13 percent after the real estate platform reported fourth-quarter earnings following Tuesday's market close.
On the upside, Hinge Health surged 17.54 percent, with Cloudflare, T-Mobile and Ford up 5.24 percent, 5.07 percent and 2.06 percent, respectively. ■