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Morning Bid: Fed under pressure as layoffs mount
| USA | economy

Morning Bid: Fed under pressure as layoffs mount

#Federal Reserve #Layoffs #Amazon #Bitcoin #Interest rates #Government shutdown #Stock market #Capital expenditure

📌 Key Takeaways

  • U.S. layoffs surged in January to a 17-year high, significantly increasing the pressure on the Federal Reserve to consider interest rate cuts.
  • A U.S. government shutdown has delayed the release of the critical non-farm payrolls report, leaving markets without official labor data.
  • Amazon shares plummeted following a projection of a 50% increase in capital expenditures for the 2026 fiscal year.
  • Traders have increased the probability of a 25-basis-point Fed rate cut in March to 22.7%, up from 9.4% just a day prior.

📖 Full Retelling

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.

🐦 Character Reactions (Tweets)

Market Oracle

Looks like 'layoffs' is the new buzzword of 2026. Should we start a bingo card for this year's economic panic? First one to yell 'recession!' wins a free job application! 🎉💼

Tech Whisperer

Amazon's shares took a dive. I guess you could say their profit margins took the same flight path as my New Year resolutions. 🚀📉

Crypto Sage

Bitcoin bouncing back after slipping through $70k is just like my weekend bender—there’s no fall too steep when a hangover recovery is on the line! 🍻💸

Economic Clown

Could someone please tell the Fed that interest rate cuts won’t make employers hire? It’s like trying to fix a flat tire by inflating your ego. 🚗🔧

💬 Character Dialogue

aska: What a bunch of fools! Why can’t they see the writing on the wall? Layoffs everywhere and they still hope for a miracle from the Fed! Baka!
darth: Amidst the shadows of market despair, one must ponder the fickle nature of fate and the illusions we cling to. The Force is strong, but it does not shield the unworthy.
aska: Right? And tech stocks dropping like they’re in free fall – what’s next, an investment in nostalgia? Baka!
darth: The tech empire's arrogance has met its reckoning, as those who rise too high must eventually face the abyss. Navigate wisely, for the dark side of the market awaits.
aska: And here they are, thinking crypto is their savior! It’s like bringing a knife to a lightsaber fight! Baka!

🏷️ Themes

Monetary Policy, Market Volatility, Labor Market

📚 Related People & Topics

Layoff

Involuntary termination of employment of an employee due to business concerns

A layoff or downsizing is the temporary suspension or permanent termination of employment of an employee or, more commonly, a group of employees (collective layoff) for business reasons, such as personnel management or downsizing an organization. Originally, layoff referred exclusively to a temporar...

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Interest rate

Percentage of a sum of money charged for its use

An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed. Interest rate periods are ordinarily a year and are often annualized when not. Alongside interest rates, three other variables determine total interest: principal sum, compounding f...

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Amazon

Amazon

Topics referred to by the same term

Amazon most often refers to:

Wikipedia →

Federal Reserve

Federal Reserve

Central banking system of the US

The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics (particularly the panic of 1907) led to th...

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Bitcoin

Bitcoin

Decentralized digital cryptocurrency

Bitcoin (abbreviation: BTC; sign: ₿) is the first decentralized cryptocurrency. Based on a free-market ideology, bitcoin was invented in 2008 when an unknown person published a white paper under the pseudonym of Satoshi Nakamoto. Use of bitcoin as a currency began in 2009, with the release of its op...

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🔗 Entity Intersection Graph

Connections for Layoff:

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📄 Original Source Content
try{ var _=i o; . if(!_||_&&typeof _==="object"&&_.expiry Amazon stock slides 9% premarket as 2026 capex guidance blows past expectations Gold, silver prices log shaky gains after bruising week 3 reasons why Bitcoin is falling Amazon’s capex plans, Stellantis, Bitcoin’s fall - what’s moving markets (South Africa Philippines Nigeria) Morning Bid: Fed under pressure as layoffs mount Economy Published 02/06/2026, 12:46 AM Updated 02/06/2026, 12:48 AM Morning Bid: Fed under pressure as layoffs mount 2 UK100 0.02% Silver Spot US Dollar 4.75% DE40 0.42% JP225 0.89% AMZN -4.42% SI -3.54% KS11 -1.44% Bitcoin US Dollar -7.23% A look at the day ahead in European and global markets from Gregor Stuart Hunter. It’s Jobs Friday and there is no jobs report. With non-farm payrolls delayed by a U.S. government shutdown - again - and a selloff on Wall Street going global, markets are anxious. Traders are increasingly betting the Federal Reserve might ease policy at its next meeting, following fresh signs of economic stress in the labour market. A survey from global outplacement firm Challenger, Gray & Christmas showed layoffs announced by U.S. employers surged in January to the highest level for the month in 17 years. Though pricing implies a strong possibility the Fed will remain on hold, funds futures are pricing a 22.7% probability of a 25-basis-point cut at the U.S. central bank’s next two-day meeting that ends on March 18, compared with a 9.4% chance a day earlier, according to the CME Group’s FedWatch tool. For now, a selloff for global stocks is into its third day and emerging markets are looking shaky. Korean shares led the way after an early 5% dive in the KOSPI triggered a trading halt. It wasn’t all bad though, with Japan’s Nikkei 225 eking out a 0.6% gain as stocks rally into Sunday’s election. In early European trades, pan-region futures were last down 0.1% and FTSE futures were down 0.6%, though German DAX futures were up 0.1%. In an indication that investor confidence ...

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