🚀 The US added double the expected jobs in January

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Market Overview
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Year To Date Performances:

1. The U.S. labour market kicked off 2026 with an unexpected burst of energy as nonfarm payrolls rose by 130,000 in January, more than doubling the Dow Jones consensus estimate of 55,000. This performance marks the strongest month for hiring since late 2024 and provides a much-needed stabilizer for an economy that many analysts feared was sliding into a deep hiring freeze. The unemployment rate followed suit by edging lower to 4.3%, beating forecasts that it would hold steady at 4.4%. Even more encouragingly, the broader "U-6" measure—which accounts for discouraged and underemployed workers—slipped to 8.0%, suggesting that the underlying foundations of the workforce are beginning to firm up after a stagnant 2025.

2. The Treasury Department's latest figures suggest that President Trump's aggressive trade strategy is delivering a massive—if legally precarious—cash infusion to the federal coffers. Tariff revenue exploded by 304% fiscal year-to-date, with the U.S. pocketing $30 billion in customs duties in January alone. This influx of cash helped narrow the monthly budget deficit to $95 billion, a 26% improvement over the same period last year. While the administration is touting this as a victory for fiscal responsibility, the windfall has primarily served as a temporary bandage on a budget that is still grappling with a $1.9 trillion projected deficit for 2026.

3. While the broader market remains jittery over Big Tech’s eye-watering spending spree, Bill Ackman is doubling down on the belief that Meta Platforms is currently the biggest bargain in the sector. During Pershing Square Capital Management’s annual investor presentation today, the firm revealed it has built a stake in Meta, representing roughly 10% of its total capital—a position valued at approximately $2 billion. Ackman’s team argues that the current share price significantly underappreciates Meta’s long-term upside from AI integration and described the company as one of the world’s greatest businesses trading at a "deeply discounted valuation."

   Headlines

   1. McDonald’s shares are being hurt by concerns over the impact of GLP-1 drugs on their business.

   2. Investors concerned about the Federal Reserve's actions under a new chair are buying significant amounts of gold.