Overnight US stocks | Three major indexes closed slightly lower, Micron Technology, Inc. (MU.US) rose nearly 10%.

On Wednesday, the three major indices fell slightly. The U.S. added 130,000 non-farm jobs in January, far exceeding expectations. The unemployment rate dropped to 4.3%. The strong non-farm employment data reduced the probability of the Federal Reserve needing to cut interest rates again before mid-year. [US Stocks] At the close, the Dow fell by 66.74 points, or 0.13%, to 50,121.40 points; the Nasdaq fell by 36.01 points, or 0.16%, to 23,066.47 points; the S&P 500 fell by 0.34 points, or 0.01%, to 6,941.45 points. Microsoft Corporation (MSFT.US) and Alphabet Inc. Class C (GOOG.US) both fell by 2%, NVIDIA Corporation (NVDA.US) and Apple Inc. (AAPL.US) rose by less than 1%, while Micron Technology, Inc. (MU.US) rose by nearly 10%. The Nasdaq China Golden Dragon Index fell by 0.65%, with KINGOFT CLOUD (KC.US) rising by 10%. [European Stocks] The German DAX30 Index fell by 125.04 points, or 0.50%, to 24,860.78 points; the UK's FTSE 100 Index rose by 112.46 points, or 1.09%, to 10,466.30 points; the French CAC40 Index fell by 14.64 points, or 0.18%, to 8,313.24 points; the Euro Stoxx 50 Index fell by 9.51 points, or 0.16%, to 6,037.55 points; the Spanish IBEX35 Index fell by 91.45 points, or 0.50%, to 18,026.15 points; the Italian FTSE MIB Index fell by 317.49 points, or 0.68%, to 46,485.50 points. [Cryptocurrency] Bitcoin fell by nearly 1.7% to $67,701, while Ethereum fell by over 3% to $1,961. [US Dollar Index] The US Dollar Index, measuring the US dollar against six major currencies, rose by 0.04% to close at 96.834 in the forex market. At the close of the New York forex market, 1 euro exchanged for 1.1882 US dollars, lower than the previous trading day's 1.1894 US dollars; 1 pound exchanged for 1.3637 US dollars, lower than the previous trading day's 1.3666 US dollars. 1 US dollar exchanged for 152.83 Japanese yen, lower than the previous trading day's 154.49 Japanese yen; 1 US dollar exchanged for 0.7703 Swiss francs, higher than the previous trading day's 0.7682 Swiss francs; 1 US dollar exchanged for 1.3561 Canadian dollars, higher than the previous trading day's 1.3551 Canadian dollars; 1 US dollar exchanged for 8.8813 Swedish kronor, lower than the previous trading day's 8.9021 Swedish kronor. [Precious Metals] Spot gold rose by 1.18% to $5,082.47, while spot silver traded at $84.241 per ounce. [Oil] Light crude oil futures for delivery in March on the New York Commodities Exchange rose by 67 cents to close at $64.63 per barrel, up 1.05%; Brent crude oil futures for delivery in April rose by 60 cents to close at $69.40 per barrel, up 0.87%. [Macro News] U.S. labor market stabilizes, giving the Federal Reserve room to hold steady. Media reviews of the non-farm payrolls report indicate that the growth in U.S. non-farm employment accelerated in January, with the addition of 130,000 jobs far exceeding expectations, and the unemployment rate falling to 4.3%. This signals a stabilization in the labor market, which may provide the Federal Reserve with room to maintain rates for some time as policy makers monitor inflation. Part of the reason for the better-than-expected employment growth is that retailers and delivery companies employed fewer holiday workers last year in seasonally sensitive industries. January usually sees the most concentrated holiday-related layoffs. Given subdued seasonal hiring, layoffs may also have decreased proportionately, boosting employment growth. Despite the increase in non-farm employment in January, the labor market remains lukewarm, struggling even in the face of strong economic growth. Concerns about employment and high inflation have weakened Americans' satisfaction with Trump's economic policies. Surge in tariff revenue helps reduce the U.S. deficit, Supreme Court ruling becomes a key variable in the future. Data shows that in the first four months leading up to January, the U.S. budget deficit decreased from $840 billion in the same period last year to $697 billion, a 17% decrease. Currently, the Supreme Court is deliberating whether Trump has the authority to impose most tariffs, and the deficit reduction highlights the significant impact this ruling will have on government interests. With revenue growth outpacing expenditures, total revenue increased by 12% while expenditures only increased by 2%. From October last year to January this year, tariff revenue totaled $124 billion, an increase of about 304% compared to the same period in 2025. Earlier on Wednesday, the Congressional Budget Office estimated that if tariffs already in place as of November 20th remain unchanged for the next ten years, tariff revenue could reduce the federal deficit by $3 trillion. However, this is not enough to offset other factors in Trump's economic plan that increase the deficit. The Congressional Budget Office has increased its ten-year total deficit forecast by $1.4 trillion. Federal Reserve to abandon some requirements for bank remediation defects. Sources say the Federal Reserve has signaled to the banking sector that it plans to abandon some of the remediation warnings previously issued to certain institutions. This comes as Vice Chair Bowman continues to relax regulations on U.S. Financial Institutions, Inc. Earlier this month, Federal Reserve regulators informed banks that examiners would begin assessing unresolved warning matters. These warnings are private remediation orders requiring banks to fix operational defects. Sources say that if these warnings do not align with recent Federal Reserve directives (which require examiners to focus more on immediate risks to bank financial health rather than process and procedural issues), they will be rescinded. The Fed's action is focused on so-called "Matters Requiring Attention" and "Matters Requiring Immediate Attention," the latter typically meaning swift action is required. These directives may be triggered by various aspects of a bank's operations, including financial conditions, cybersecurity readiness, or executive succession planning. Sources say that the Fed will still issue directives on issues discovered during routine checks, but the threshold for triggering these directives will be raised. Bank of Canada meeting minutes directly point to increased U.S. policy uncertainty, warning of trade and independent Federal Reserve risks. The Bank of Canada stated that recent U.S. behavior in trade, foreign policy, and central bank independence is causing global "greater volatility" and increased uncertainty. In January 2026, for the second consecutive time, the bank kept the interest rate at 2.25%, with officials citing increased uncertainty making it difficult for policymakers to determine whether the next step is a rate hike or cut. Meeting minutes reiterated that it is "difficult to predict the timing and direction of the next policy rate change." The Committee explicitly stated that the most serious source of instability lay in Canada's southern neighbor, though the minutes did not directly name Trump. The minutes cited examples of Trump administration international and trade policies as sources of instability and included Trump's attacks on the Federal Reserve in internal discussions for the first time. The minutes stated, "Recent events involving GEO Group Inc., including those in Venezuela, Iran, and Greenland, and threats to the independence of the Federal Reserve, have made the world more volatile..." Additionally, "U.S. trade policy is increasingly being used for GEO Group Inc. political purposes rather than economic purposes, making it more unpredictable." [Stock News] Bill Ackman's Pershing Square increases Meta stake with new position valued at $20 billion as of year-end. Pershing Square, under Bill Ackman, disclosed at the annual meeting of one of its funds on Wednesday that it has taken a new position in Meta Platforms (META.US), with the position accounting for 10% of the firm's capital as of the end of 2025, amounting to approximately $20 billion based on previously disclosed data. Over the past six months, Meta's stock has cumulatively fallen by about 13%. Pershing Square believes the decline stems from investor concerns over the company's massive investments in artificial intelligence. Part of Pershing Square's investment thesis is based on the belief that artificial intelligence will enhance Meta's content recommendation and personalized advertising capabilities, potentially unlocking new opportunities in wearable devices or AI digital assistants for enterprises. Pershing Square stated, "Meta's business model is among the most direct beneficiaries of artificial intelligence integration." According to presentation materials, Pershing Square began building the Meta position in November at an average cost of $625 per share. Since then, Meta's stock has risen by 11% through the end of 2025 and an additional 3% at the start of 2026. McDonald's Corporation sees sales growth at two-year high in the U.S. as value strategy becomes core engine. Thanks to the continued resonance of value meals with price-conscious diners, McDonald's Corporation's (MCD.US) fourth-quarter sales in the U.S. saw the fastest growth in over two years. In the quarter, sales at existing restaurants in the U.S. grew by 6.8% year-on-year, exceeding expectations and reaching the highest level since 2023. The fourth-quarter performance indicates that efforts such as launching more affordable items and value meals as low as $5 are paying off and helping this burger chain giant outperform its competitors. CEO Chris Kempczinski said in a company statement on Wednesday that concerns about affordability helped improve fourth-quarter traffic. The company also mentioned that the average check per U.S. diner increased due to "successful marketing activations." AI infrastructure demand surges, Cisco Systems, Inc. raises performance expectations. Cisco Systems, Inc. (CSCO.US), the world's largest manufacturer of computer network and internet equipment, released an optimistic forecast for the current quarter, suggesting that the company is attracting a large number of customers building artificial intelligence systems. The company stated that revenue for the quarter ending in April is expected to reach $15.4 billion to $15.6 billion, exceeding Wall Street's average expectation of $15.2 billion. Cisco Systems, Inc. has been adjusting its chips and network devices to handle the massive information needed for artificial intelligence data centers. Analyst Woo Jin Ho said, "Artificial intelligence remains a strong sales growth DRIVER. Large data center operators continue to expand deployments of artificial intelligence infrastructure, driving demand for higher-capacity networks." Last year, Cisco Systems, Inc.'s stock price rose by 30%. Gurman: Apple Inc. Siri upgrade hits deadlock, some features may be delayed until September. Renowned tech journalist Gurman reported that Apple Inc.'s (AAPL.US) long-planned Siri voice assistant upgrade project has hit a snag in recent weeks of testing, potentially resulting in delays for the release of several highly anticipated features. According to sources, Apple Inc. initially planned to introduce these new features in iOS 26.4 (scheduled for release in March), but is now considering spreading them out across future versions. This means that at least some features may be delayed until iOS 26.5, expected to be released in May, or even until iOS 27 in September. Sources say that testing revealed new issues with the software, leading to the recent delay. The upgraded Siri will allow users to precisely control Apple Inc. and third-party applications through voice commands. [Major Analyst Ratings] Bernstein: Raises Apple Inc. (AAPL.US) target price from $325 to $340. UBS Group AG: Raises NVIDIA Corporation (NVDA.US) target price from $235 to $245.