Why is US stock market down today? Dow, S&P 500 and Nasdaq see big crash today as Wall Street tumbles sharply

Economic Overview - The US stock market experienced a significant downturn, with the Dow Jones Industrial Average falling below 50,000, closing at 49,999.24, down 188.90 points (0.38%), while the Nasdaq dropped 192.48 points (0.83%) to 22,909.99 [3][13] - Despite the addition of 130,000 jobs in January 2026, surpassing forecasts of 75,000, the unemployment rate decreased to 4.3%, lower than the expected 4.4% [3][13] Labor Market Insights - The Bureau of Labor Statistics revised the total jobs added in 2025 down to 181,000 from a previously reported 584,000, indicating a significant reduction in average monthly job growth from 50,000 to 15,000 [2][9] - The 2025 labor market was characterized as a "hiring recession" across most sectors, with healthcare being the only exception, leading to a "K-shaped" market where only a few sectors thrive while the broader economy struggles [4][10] Market Reactions - The immediate market reaction to the stronger-than-expected hiring data was a spike in bond yields, which negatively impacted stock valuations, particularly for the S&P 500 and Nasdaq, heavily weighted towards companies with future cash flows [3][10] - Individual stocks faced dramatic declines, with Unity Software (U) plummeting 34.16% to $19.13 due to concerns over competition from Alphabet's generative AI tool, "Project Genie 3" [6][13] - Robinhood Markets (HOOD) saw a 12.78% drop to $74.66, reflecting a broader sell-off in retail-centric platforms as the Nasdaq Crypto Index fell 3.72%, dragging Bitcoin down to $66,227 [7][13] Commodities and Investment Trends - In contrast to equities, the commodities market showed resilience, with gold rising 1.12% to $5,087.10 and silver increasing by 3.91% to $83.53, as investors sought safe havens amid economic instability [11][14] - The current economic environment is marked by erratic trade policies and a transition in Federal Reserve leadership, leading to a "wait-and-see" approach among investors until the next Consumer Price Index (CPI) report is released [12][14]