Major indices had a bumpy start and are now off of their session lows.

Eight sectors are in the green. Energy (XLE) is leading the way higher and getting a boost from oil prices moving higher on Iran tensions. Consumer Staples (XLP) is the runner up, with beverage and nicotine names giving the sector a boost. On the other hand, Alphabet (GOOG/L) and Amazon (AMZN) are adding pressure to the Communication Services (XLC) and Consumer Discretionary (XLY) sectors.

In other news, CME Group (CME) is reportedly working on a plan to launch the first futures contracts for rare earth elements.

Economic Data

Non-farm Payroll additions accelerated from 48K in December to 130k in January, and above forecasts of 70K. Notably, Healthcare added 82K jobs, social assistance added 42K jobs, and construction added 33K jobs. On the other hand, the federal government lost 34K jobs, and employment in financial activities was down 22K. The report also showed manufacturing payrolls increase by 5K, the highest since November 2024.

The Unemployment rate moved lower to 4.3% in January from 4.4% in December and came in below expectations of 4.4%. Additionally, the participation rate edged higher to 62.5% from 62.4%.