The ADP National Employment report showed U.S. private nonfarm payrolls rose by +22K in January. U.S. ISM services index was steady at 53.8, beating expectations. S&P Global services PMI for January was revised up to 52.7. Fed Governor Cook emphasized the importance of bringing inflation back to target for maintaining credibility.

U.S. rate futures predict an 88.0% chance of no rate change and a 12.0% chance of a 25 basis point rate cut at the Fed’s March meeting. Q4 corporate earnings season continues with Amazon, ConocoPhillips, Bristol-Myers Squibb, Roblox, and Microchip Technology reporting today. S&P 500 companies expected to post an average +8.4% increase in quarterly earnings for Q4.

Investors await U.S. Initial Jobless Claims data expected to be 212K, and U.S. JOLTs Job Openings data anticipated at 7.200 million for December. Atlanta Fed President Bostic is set to deliver a speech. The January jobs report will be released on February 11th, with the consumer price index report following on February 13th.

Germany’s Factory Orders rose +7.8% m/m in December, surpassing expectations. France’s Industrial Production fell -0.7% m/m, lower than expected. Eurozone’s Retail Sales dropped -0.5% m/m and rose +1.3% y/y, missing expectations. Asian markets closed lower, with Shanghai Composite down -0.64% and Nikkei 225 down -0.88%.

China’s Shanghai Composite fell on tech and metal weakness. Tech sector slump globally due to AI concerns. Consumer stocks rise ahead of Lunar New Year. Trump and Xi discuss trade. Japan’s Nikkei 225 drops on tech sector weakness. SoftBank Group down -7%. Foreign investors buy Japanese stocks. Bond market sees demand in 30-year debt auction. Japan’s Lower House election on February 8th.

Read more at Yahoo Finance: Stocks Slip Before the Open as Tech-Led Selloff Continues, Amazon Earnings on Tap