On Wednesday, the Dow Jones Industrial Average ended its three-session streak of gains, reflecting a shift in market sentiment. This occurred amidst the release of a robust jobs report which indicated a notable increase in nonfarm payrolls and a dip in the unemployment rate. Concurrently, the CNN Money Fear and Greed Index showed a decrease in overall investor confidence, maintaining its position within the "Neutral" range.
Market Reaction to Economic Data and Individual Stock Performance
In the financial markets on Wednesday, February 12, 2026, the overall tone was predominantly negative for U.S. equities, with the Dow Jones index registering a drop of over 50 points, thus concluding its recent upward momentum. This downturn coincided with economic data revealing a stronger-than-anticipated labor market. Nonfarm payrolls surged by 130,000, significantly surpassing economists' forecasts of 70,000, with the private sector contributing 172,000 to these gains. Furthermore, the unemployment rate unexpectedly fell to 4.3% from 4.4%.
Amidst this backdrop, individual stocks experienced varied movements. Notably, Micron Technology Inc. (NASDAQ: MU) shares climbed approximately 10% after Morgan Stanley elevated its price target for the company to $450. In contrast, Robinhood Markets Inc. (NASDAQ: HOOD) saw its stock decline by about 9% due to disappointing revenue figures and weaker-than-expected cryptocurrency trading results. Conversely, T-Mobile US (NASDAQ: TMUS) reported a 5% increase following a robust performance in its fourth-quarter earnings. Several other companies, including American Electric Power Company Inc. (NYSE: AEP), US Foods Holding Corp. (NYSE: USFD), and Applied Materials Inc. (NASDAQ: AMAT), were anticipated to release their earnings reports. While sectors such as energy, materials, and consumer staples on the S&P 500 posted gains, financial and communication services sectors experienced declines. The Dow Jones concluded the day down approximately 67 points at 50,121.40. The S&P 500 saw a marginal decrease of 0.01% to 6,941.47, and the Nasdaq Composite dipped 0.16% to 23,066.47.
The CNN Business Fear and Greed Index, a key indicator of market sentiment, registered a reading of 48.9, remaining in the "Neutral" zone, a slight decrease from its previous reading of 50.9. This index, which ranges from 0 (maximum fear) to 100 (maximum greed), gauges investor psychology based on seven equally weighted indicators, suggesting that higher fear can depress stock prices while greater greed can inflate them. This nuanced market activity underscores the ongoing interplay between macroeconomic indicators and investor behavior, offering valuable insights into the complex dynamics of the financial world.