Morning Bid: Fed under pressure as layoffs mount

Global investors and the Federal Reserve faced mounting economic anxiety on February 6, 2026, as a surge in U.S. layoffs and a government-shutdown-induced delay of the official non-farm payrolls report triggered significant market volatility. Data from Challenger, Gray & Christmas revealed that January job cuts reached their highest level in 17 years, fueling speculation that the central bank may need to pivot toward interest rate cuts to stabilize a tightening labor market. The absence of official employment data has left traders navigating a vacuum of certainty, leading to a three-day global stock selloff and a notable shift in Fed interest rate expectations. The turmoil was punctuated by a dramatic decline in big tech, with Amazon shares plunging as much as 15% in after-hours trading. The selloff followed the e-commerce giant’s announcement of a massive 50% increase in capital expenditure guidance for 2026, a move that alarmed investors concerned about profit margins and cash flow. This tech-led drag contributed to broader declines across Wall Street, which subsequently spilled over into Asian and European sessions, although some indices like Japan’s Nikkei 225 managed to post modest gains ahead of regional elections. In the speculative asset classes, the market experienced a high-stakes reversal of fortunes. After Bitcoin plummeted through the $70,000 threshold and silver faced a nearly 20% drop on Thursday, both assets found a floor during Asian trading hours on Friday. Bitcoin recovered from its lows to trade back above $65,000, while silver managed a moderate bounce. Despite these recoveries, the underlying sentiment remains fragile as the market awaits further clarity on corporate earnings from firms like Societe Generale and Philip Morris, as well as European industrial data.