Noon Market Summary: Major Indexes Drop 1.3%-1.8% Amid Record Job Cuts and AI Ad War; Kelly Services B (KELYB) Surges 665%

The U.S. market opened sharply lower at noon, with the Dow Jones Industrial Average (-1.318%), S&P 500 (-1.452%), and Nasdaq Composite (-1.838%) all posting steep declines. Commodities followed suit, as WTI crude oil fell 3.3% to $62.98 and gold dropped 2.4% to $4,831.70. Energy (-1.99%) and Materials (-3.16%) sectors led the selloff, while Consumer Staples (+0.48%) was the lone bright spot. The bearish sentiment reflects growing economic uncertainty and sector-specific headwinds.

Hot Stocks

Tech Giants:

• Microsoft (MSFT): -3.46%
• Amazon.com (AMZN): -4.43%
• Meta (META): -0.45%
• Nvidia (NVDA): -0.64%
• Tesla (TSLA): -3.47%

Retail & Logistics:

• Bob’s Discount Furniture (BDF): +17.0% (post-IPO rally)
• The Hershey (HSY): +7.66%
• XPO Logistics (XPO): +8.58%

Mega Gainers:

• Kelly Services B (KELYB): +665.12%
• X3 Holdings (XTKG): +60.11%
• C3is (CISS): +47.37%

Energy & Industrials:

• McKesson (MCK): +16.53%
• Cardinal Health (CAH): +9.89%
• Huntington Ingalls (HII): -9.95%

Macro & Corporate News

1. Record Job Cuts Signal Economic Woes

U.S. employers announced 108,435 job cuts in January 2026, the highest since 2009. The data, driven by layoffs at Amazon and UPS, intensified fears of a recessionary slowdown, weighing on consumer discretionary stocks (-2.32%) and amplifying market volatility.

2. OpenAI vs. Anthropic: AI Ad War Escalates

OpenAI CEO Sam Altman criticized Anthropic’s ad-free Claude strategy as “deceptive,” highlighting a bitter rivalry in the AI sector. The clash underscores divergent monetization models and could influence investor sentiment toward AI-driven tech stocks, with Microsoft (MSFT) and Alphabet (GOOG) facing indirect pressure.

3. Bob’s Discount Furniture Debuts on NYSE

The value furniture retailer priced its IPO at $17/share, signaling consumer demand for affordable goods. The debut added a short-term boost to retail sentiment, though broader sector closures (Eddie Bauer, Pizza Hut) offset optimism.

4. Kalshi Expands Surveillance Amid Prediction Market Growth

Prediction platform Kalshi announced enhanced enforcement measures, including an independent advisory committee, to address insider trading risks. With trading volume nearing $160 million ahead of Super Bowl 60, regulatory scrutiny could impact speculative trading activity.

5. UK Political Crisis Drives Borrowing Costs Higher

Prime Minister Keir Starmer’s leadership crisis over Peter Mandelson’s appointment as U.S. ambassador triggered a spike in UK gilt yields to 5.39%. The political instability raised concerns about fiscal policy risks, indirectly affecting global investor risk appetite.

6. Google’s $185B AI Bet Sparks Bubble Fears

Alphabet’s record $185 billion capex for 2026 to counter ChatGPT threats has analysts warning of an unsustainable AI spending bubble. The move, coupled with Microsoft’s $16B Waymo investment, highlights tech’s aggressive but costly race for dominance.