US stocks wobbled on Wednesday as investors digested a January jobs report that blew past expectations, showing the economy added 130,000 positions and the unemployment rate ticked down to 4.3%. The Dow Jones Industrial Average fell below flatline while the S&P 500 gained 0.1% and the tech-heavy Nasdaq Composite rose 0.2%.

However, the bullish monthly data was counterbalanced by heavy revisions to 2025 numbers, which brought annual payrolls growth down to 181,000 from the previously reported 584,000. That represents the weakest annual job growth since 2003, outside of a recession. The surprise report is feeding into bets on Federal Reserve rate cuts, with traders now pricing in over 40% probability that the central bank will hold rates steady through June.

Treasury yields jumped as better-than-expected employment numbers increased bets that the Fed would hold interest rates steady. The 10-year yield rose 0.6% to 4.17%, while the five-year yield climbed 4 basis points to 3.74%. Markets are still pricing in two rate cuts by year-end, though Wednesday's data suggests the Fed may be less aggressive in cutting rates than previously expected.