Stocks Fall After Job Cuts Data, Trump Defends Noem, More
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News when you want it with Bloomberg News Now. I'm Nathan Hager. Thursday morning trading is underway on Wall Street with a big cheer, but stocks are opening with a big drop. That is the sound of the opening bell from the floor of the New York Stock Exchange. At the open, the S&P 500 is down 0.8% or more than 50 points. It's trading just above 6,800. The Dow Jones Industrial Average opens lower by 0.6% or about 300 points. The tech-heavy Nasdaq Composite is sinking 1.3% or about 300 points. A tough start to the trading day after some worrying data on the labor market, starting with a report from the outplacement firm Challenger Gray and Christmas. Bloomberg's Michael McKee has the numbers.
108,435 job cuts announced in the month of January. That is the highest January total since 2009. As far as the numbers go, it's up 205% from December.
On top of that report, Bloomberg's Mike McKee reports 231,000 people filed for first-time jobless benefits last week when the major winter storm came through. That was also more than economists expected. It's adding to a sell-off in big tech with investors assessing big spending plans in artificial intelligence. Google parent Alphabet laid out plans to shell out a record $185 billion this year as it reported an earnings beat last quarter. Matthew Bloxham is a tech analyst for Bloomberg Intelligence.
I mean, it's a huge number. And for context, it is at that top end, $185 billion. It would be double, more than double what they spent in 2025. more than the combined capex over the last three years. So it really is a big, big jump.
But Matt Bloxham with Bloomberg Intelligence says Alphabet's revenues will back it up. We'll get results from Amazon after the closing bell. The tech sell-off is fueling a Bitcoin bust. The token is down more than 3%, trading just above $70,000, near its lowest level since President Trump's election in November 2024. Silver continues its decline as well. It is sinking more than 12.5% and close to wiping out its two-day recovery. In Washington, President Trump is speaking this morning at the National Prayer Breakfast and offering support for his Homeland Security Secretary, Kristi Noem.
Why are stocks dropping after job cuts data?
I did the Super Bowl interview. Sir, are you going to relieve Kristi Noem of her duties? No. No. I said, why would I do that? We have the strongest border in the history of our country.
The president also told NBC News the enforcement in Minneapolis needed a lighter touch after the deaths of two Americans and that he made the decision to pull 700 federal agents yesterday. Meanwhile, Democrats have laid out 10 demands to rein in immigration enforcement. The list from leaders Chuck Schumer and Hakeem Jeffries includes warrant requirements, body cameras, ID badges, no masks, and for agents to verify U.S. citizenship before detaining people. Funds for the Homeland Security Department are due to run out next Friday. Republican Senator Katie Britt called the Democrats' proposal a ridiculous Christmas list. A first day of talks among the U.S., Russia and Ukraine has wrapped up in Abu Dhabi.
U.S. Envoy Steve Witkoff says both countries agreed to swap 157 prisoners each in their first exchange like that in five months. The U.S. and Russia also agreed to restart high-level military contacts that were suspended after Russia's invasion. The Kremlin says it's also ready to engage in dialogue on extending the New START nuclear treaty if the U.S. provides constructive responses. The last arms control treaty between the U.S. and Russia expired today. President Trump is warning Iran's supreme leader he should be, quote, very worried ahead of talks on Tehran's nuclear program tomorrow. Bloomberg's Patrick Sykes reports the scope of the negotiations is still unclear.
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