Stock market today: Dow, S&P 500, Nasdaq futures climb as January jobs report exceeds expectations

Oil prices climbed through Wednesday morning as traders evaluated the potential for escalation between the US and Iran as negotiations continue over Tehran’s nuclear enrichment program.

Futures on the international pricing benchmark Brent crude (BZ=F) climbed by more than 2.5% on Wednesday to cross $70.50, while those on US benchmark West Texas Intermediate (WTI) crude (CL=F) picked up 2.7% to cross $65.60.

On Tuesday morning, President Trump said he is thinking about sending a second US aircraft carrier to Middle Eastern waters, adding to the already sizable military armada positioned in the region. Trump’s comments followed talks between the US and Iran in Oman last week.

Last year, US and Israeli forces launched a series of airstrikes against Iran’s premier nuclear enrichment facility, and President Trump earlier this year threatened to intervene militarily in Iran if a violent crackdown that killed thousands of protesters wasn’t abated.

Though Iran’s uranium enrichment program, which would allow it to build nuclear weapons, is the primary focus of the talks between Washington and Tehran, Trump has also taken aim at Iran’s ballistic missile program as he seeks to declaw the country’s authoritarian regime.

Escalations between the two global powers could shock the oil market if Iran were to close or otherwise attempt to interfere with the Strait of Hormuz, a key shipping chokepoint that sees roughly 20 billion barrels of petroleum products traverse its waters every day.

While analysts told Yahoo Finance that a full closure of the Strait ranges from unlikely to impossible, the US Maritime Administration said in a briefing on Monday that ship captains should “remain as far as possible from Iran’s territorial sea without compromising navigational safety” after Iranian forces recently attempted to force ships into the country’s territorial waters.

The US stock market pushed healthily into the green in the first minutes of open trading on Wednesday after an unexpectedly strong jobs report from the Bureau of Labor Statistics. The jobs report found that the US economy added 130,000 jobs in January, exceeding expectations. The unemployment rate ticked down slightly to 4.3% from 4.4%.

The tech-heavy Nasdaq Composite (^IXIC) jumped by 0.8%, while the S&P 500 (^GSPC) rose 0.7% and the blue chip-heavy Dow Jones Industrial Average (^DJI) picked up 0.6%, or 300 points.

The Bureau of Labor Statistics’ January data release on Wednesday, while bullish on a monthly basis, reported heavy revisions to 2025 numbers, bringing the year’s payrolls growth to 181,000 from the previously reported 584,000 additions.

On the corporate calendar, McDonald’s (MCD) and Cisco (CSCO) will report after the bell, while Kraft Heinz (KHC) published fourth-quarter earnings before the opening bell. Cisco’s earnings are expected to give investors a read on the continued appetite for AI chip spending.

The US added 130,000 jobs in January, according to official data released Wednesday morning, far exceeding consensus expectations of 65,000 jobs added for the month.

In addition to the January numbers, the Bureau of Labor Statistics also revised its total 2025 payrolls figure down to 184,000 jobs added for the year, far below the previously published 584,000 additions, which already marked the weakest increase since 2020, according to Bloomberg.

The unemployment rate was little changed in January, falling to 4.3% against expectations of it holding steady at 4.4%.

The data came as a surprise to the upside after market watchers had looked for a possible steep drop in employment numbers. National Economic Council director Kevin Hassett said earlier in the week that smaller job gains may be explained by a “productivity boom.”

Private data released last week indicated the labor market remained bruising in January for out-of-work Americans, with little in the way of new jobs.

The government’s monthly employment situation report, which includes both the unemployment rate and payroll growth, was meant to be published last Friday before it was delayed by the brief partial government shutdown.

That left market watchers and economists waiting a few extra days for what Bank of America Global Research dubbed the “Super Bowl of jobs reports” and economist Michael Madowitz of the Roosevelt Institute called #ConspiracyTheoryJobsday.

Shopify (SHOP) stock rose 11% before the bell on Wednesday after forecasting quarterly revenue above Wall Street estimates.

Reuters reports:

Read more here.

Kraft Heinz (KHC) announced on Tuesday that it would pause its spin-off plans, with the company’s new CEO, Steve Cahillane, saying that its “challenges are fixable and within our control.”

The company, which was set to spin off its meal business, Global Taste Elevation Co., and grocery business North American Grocery Co., plans to invest $600 million across marketing, sales, research and development, and pricing.

“We are confident in the opportunity ahead and believe this investment will accelerate our return to profitable growth,” said Steve Cahillane, who became CEO on Jan. 1 and previously led Kellanova, which successfully split from the Kellogg Company in 2023.

Shares fell more than 6% in premarket trading.

In its fourth quarter results, the company reported adjusted earnings of $0.67, a beat compared to the expected $0.61, per Bloomberg consensus data. Revenue came in slightly lower at $6.35 billion, compared with the $6.37 billion expected.

Prices increased 0.5%, slightly below expectations of a 0.79% increase.

For 2026, the company expects organic net sales to be down 1.5% to 3.5%. Wall Street expected 2026 annual organic revenue to be down 0.56%. Adjusted earnings per share are expected to be in the range of $1.98 to $2.10, whereas Wall Street forecast $2.50.

Humana (HUM) stock fell 7% before the bell on Wednesday after forecasting annual profit below analysts’ estimates. The health insurer has been affected by lower quality ratings for its Medicare Advantage plans for older adults.

Moderna (MRNA) stock sank 10% during premarket hours on Wednesday after the FDA refused to review its application to sell a new flu vaccine.

Palantir (PLTR) stock dipped lower on Wednesday. The data analytics company’s shares have fallen more than 20% over the past month.