Key Takeaways Forecasters expect inflation to have decelerated in January, with core prices rising 2.5% over the year, the lowest since 2021. Tariffs are still pushing up prices, but some costs, including for housing, aren't rising as quickly as they did a few years ago. Tame inflation could take pressure off the Federal Reserve to keep its key interest rate higher for longer to subdue price increases. Price increases were likely relatively tame in January, with one key inflation measure expected ...

The Fed is going to be forced to cut rates aggressively.Assets are going higher.Prepare yourself. https://t.co/R1YlXibtPJ ...

Core Insights - The U.S. job market showed unexpected strength in January 2026, with employers adding 130,000 jobs, significantly surpassing forecasts of 55,000 jobs [1][1][1] - The unemployment rate decreased to 4.3%, the lowest level since August 2025, down from 4.4% [1][1][1] Economic Implications - The job creation in January may alleviate concerns regarding a hiring downturn and could influence the Federal Reserve's focus on inflation, potentially reducing pressure to cut interest rates [1][1][1] - Revisions to previous job creation data revealed that 2025 was worse than initially reported, with only 181,000 jobs added instead of 584,000, marking it as the worst year for job creation outside a recession since 2003 [1][1][1] Sector Performance - The health care sector was the primary driver of job growth, adding 137,000 jobs, which offset losses in government, finance, and transportation sectors [1][1][1] - Manufacturing saw a modest increase, adding 5,000 jobs, marking the first rise in manufacturing employment since November 2024 [1][1][1] Market Sentiment - Despite the positive job growth, public sentiment remains pessimistic due to strained household budgets and a stagnant job market, indicating a disconnect between economic indicators and public perception [1][1][1] - The job market is described as stabilizing but still largely frozen, with ongoing uncertainty leading workers to hold onto their current jobs and limited choices for unemployed individuals [1][1][1]

Group 1 - The article highlights Trump's desire for lower interest rates [1]

In 2023 our analysis found that soaring prices and interest rates made renting cheaper than buying for most Americans. Today the picture looks different. Our interactive map shows how https://t.co/QufGGb3Ocv ...

Unexpectedly strong employment data for January reduces the chances the Federal Reserve will see a need to cut interest rates again by midyear as the most concerning possibilities for the trajectory of the labor market seem more remote. https://t.co/lpzlORpMQ2 ...

Federal Reserve Bank of Kansas City President Jeff Schmid said the US central bank should hold rates at a “somewhat restrictive” level, as he expressed continued concerns over inflation that remains too high. https://t.co/E81knnDpn3 ...

It doesn't matter what the jobs report says this morning.The Fed should be aggressively cutting interest rates.Deflationary forces are swallowing the US economy.Tick, tock. Tick, tock. ...

♪ ANNOUNCER: NEWSMAKERS AND MARKET MOVERS. THIS IS "THE PULSE." JOANNA: GOOD MORNING. I’M FILLING IN FOR FRANCINE LACQUA.THE U.S. JOBS REPORT IS EXPECTED TO SHOW A MARKETABLE MARKDOWN AND TRADERS TURN THEIR ATTENTION TO WHAT IT MIGHT MEAN FOR RATES. THE DATA IS ASSESSED. >> RATHER THAN FINE-TUNING THE FUNDS RATE, I PREFER TO ERR AS WE MONITOR HOW THE ECONOMY PERFORMS.BASED ON MY FORECAST WE COULD BE ON HOLD FOR QUITE SOME TIME. >> WITH ME IS BLOOMBERG LIVE ANALYST. BIG DAY TODAY.THE HEADLINE NUMBER IS EXPEC ...

Economic Data - U.S. retail sales were unchanged month-over-month in December, weaker than expectations of +0.4% [2] - Core retail sales, excluding motor vehicles and parts, were also unchanged month-over-month, below the expected +0.3% [2] - The U.S. Q4 employment cost index rose +0.7% quarter-over-quarter, weaker than the anticipated +0.8% [2] - The U.S. import price index increased by +0.1% month-over-month in December, in line with expectations [2] Labor Market - Nonfarm payrolls expanded by 130,000 in January, significantly exceeding the anticipated 55,000 [4] - The unemployment rate fell to 4.3%, lower than the expected 4.4% [4] Stock Market Performance - Wall Street's major indexes closed mixed, with S&P Global (SPGI) dropping over -9% after weaker-than-expected Q4 adjusted EPS [3] - AI-infrastructure stocks like Western Digital (WDC) and Seagate Technology Holdings (STX) also retreated, with declines of over -8% and -6% respectively [3] - Datadog (DDOG) surged more than +13% after reporting stronger-than-expected Q4 results [3] Earnings Reports - Companies in the S&P 500 are expected to post an average +8.4% increase in quarterly earnings for Q4 compared to the previous year [8] - Prominent companies such as Cisco Systems (CSCO), McDonald's (MCD), and T-Mobile US (TMUS) are set to release their quarterly results [8] International Market Trends - The Euro Stoxx 50 Index is down -0.34% due to concerns over AI disruption, particularly affecting technology stocks [9] - Italy's December Industrial Production fell -0.4% month-over-month, stronger than expectations of -0.6% [11] - China's consumer inflation eased in January, with food prices declining 0.7% year-over-year [12]