Market Analysis Summary: Hawkish NFP Sends Stocks Lower
Author: Elior Manier
Date: February 11, 2026
Key Highlights
- Stock benchmarks experienced a decline after a strong Non-Farm Payrolls (NFP) report, leading traders to adjust their expectations regarding interest rate cuts.
- The Dow Jones is currently testing the 50,000 level, with significant technical levels to monitor.
- Conflicting signals from recent labor market reports have created uncertainty among traders.
- The unemployment rate has decreased to 4.3%, which is influencing market sentiment towards a hawkish outlook.
- Upcoming Consumer Price Index (CPI) data is expected to further impact Federal Reserve meeting expectations.
Market Overview
The latest NFP report has led to a reassessment of the market's outlook, with traders moving away from expectations of imminent interest rate cuts. The Dow Jones, which had shown early gains, quickly reversed course, reflecting the market's cautious stance. The unemployment rate's decline to 4.3% has become a focal point for traders as they gauge the health of the labor market.
Technical Analysis
Technical levels for major indices are critical as the market navigates through this volatility:
Dow Jones
Resistance levels are identified at 50,250 and 50,400, while support is seen at 49,500 and 48,600. A break below 49,500 could signal a deeper sell-off.
Nasdaq
The Nasdaq is struggling to breach the 25,500 resistance level, with key support at 25,000. A move below this level could indicate bearish momentum.
S&P 500
The S&P 500 is facing rejection at the 7,000 mark, with critical support levels at 6,920 and 6,800. A breach of these levels could lead to further declines.
Conclusion
As the market reacts to the latest economic data, traders are advised to remain vigilant, particularly with the upcoming CPI report and geopolitical developments, especially concerning Iran, which could introduce additional volatility.
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