US stock market down today: The US stock market crashed today, with the Dow Jones Industrial Average slipping back below the psychological 50,000 mark and the Nasdaq Composite leading losses. The Dow Index closed at 49,999.24, down 188.90 points (0.38%). The S&P 500 dropped 27.06 points (0.39%) to 6,914.75. The Nasdaq plunged 192.48 points (0.83%) to 22,909.99.
This sharp pullback came even as new US jobs data for January 2026 showed stronger-than-expected hiring. The US economy added 130,000 jobs, beating forecasts of 75,000. The unemployment rate fell to 4.3%, compared with expectations of 4.4%.
Yet markets reacted negatively. Investors focused on deeper structural weakness revealed in major Bureau of Labor Statistics revisions. The BLS now says the US added only 181,000 jobs in all of 2025, far below the previously reported 584,000. That revision cuts average monthly job growth to just 15,000 per month, down from earlier estimates of 50,000.
US stock market crashes today: Dow falls below 50,000 as Nasdaq sinks 0.83% despite strong January jobs data
The sudden downturn in the US stock market today can be traced to a collision of high-stakes macro data and technical selling. The primary catalyst was the delayed January Non-Farm Payrolls (NFP) report. Because hiring “came out of the gate” much stronger than anticipated, the immediate reaction in the bond market was a spike in yields. Higher yields act as a gravity force on stock valuations, particularly for the S&P 500 and Nasdaq, which are heavily weighted toward companies with future-dated cash flows.
Furthermore, the annual benchmark revisions revealed that 2025 was a “hiring recession” for almost every sector except healthcare, which accounted for the vast majority of gains. This lack of broad-based growth has created a “K-shaped” market reality where a few leaders thrive while the broader economy struggles with high interest rates and “labor hoarding.”
In the individual ticker space, several hot stocks saw dramatic pullbacks. Unity Software (U) led the losers, crashing 34.16% to $19.13. This freefall was driven by growing fears surrounding “Project Genie 3,” a generative AI tool from Alphabet that threatens Unity’s core game-engine licensing model. Investors are questioning if AI text-to-game capabilities will render traditional development platforms obsolete.
Robinhood Markets (HOOD) also suffered a sharp 12.78% decline, closing at $74.66. The sell-off in retail-centric platforms reflects a broader rotation out of “momentum trades” as the Nasdaq Crypto Index fell 3.72%, dragging Bitcoin down to $66,227. Even high-flying Lyft (LYFT) wasn’t immune, dropping 15.67% as concerns over consumer discretionary spending and high insurance costs weighed on the ride-sharing giant.
US Labor Market 2026: Strong Hiring vs. Weak Revisions
The January 2026 jobs report is a tale of two economies. On one hand, the headline 130,000 jobs added suggests the labor market is “finding its footing.” On the other, the revision of 2025 data—wiping out over 400,000 previously reported jobs—highlights how “unstable” the recovery has actually been.
Economists like Josh Hirt from Vanguard suggest that while the market is stabilizing, it is far from reaccelerating. The “low-hire, low-fire” environment means that while layoffs aren’t spiking across all sectors, new opportunities are scarce, particularly for recent graduates. This structural weakness is a major reason why the Dow Jones Index struggled to hold its record highs today.
Commodities and Crypto: Gold and Silver as Safe Havens?
While equities bled, the commodities market showed a different trend. Gold climbed 1.12% to $5,087.10, nearing all-time highs as a hedge against the ongoing “instability” mentioned by market analysts. Silver also saw a significant bounce of 3.91%, reaching $83.53. However, the crypto market faced a “risk-off” day, with Ether dropping 4.80% and Litecoin falling 3.84%.
Investors are clearly seeking refuge in hard assets as they navigate a 2026 economy marred by erratic trade policies and the transition of the Federal Reserve leadership toward the “Warsh era.” The market’s “wait-and-see” approach is likely to continue until the next Consumer Price Index (CPI) report provides more clarity on the Fed’s next move.