Markets traded on Wednesday with a mix of cautious optimism and lingering unease.
A stronger-than-expected US jobs report offered brief reassurance after a bleak 2025, but sharp revisions underscored how fragile the labour market remains.
That resilience was enough to rattle rate-cut bets, sending bitcoin and broader crypto lower.
In corporate news, Kraft Heinz abruptly shelved its breakup plans, while geopolitics and supply chains remained in focus as Taiwan moved to secure US rare earths and curb its dependence on China.
US jobs report surprises
US employers added 130,000 jobs in January, nearly double the expected number, while the unemployment rate fell to 4.3%, offering tentative relief after a dismal 2025.
The better-than-forecast reading came with brutal context: benchmark revisions slashed 2025’s total to just 181,000 jobs for the entire year, averaging 15,000 monthly, down from an initially reported 584,000.
Healthcare again dominated, adding 82,000 positions, while federal employment dropped 34,000 amid Trump administration cuts.
Despite January’s uptick, economists warn the labor market remains sluggish, weighed down by tariff uncertainty, immigration crackdowns limiting worker supply, and AI-driven productivity gains reducing hiring needs.
Bitcoin slides below $67K
Bitcoin slipped under $67,000 after a stronger-than-expected US jobs report nudged traders to dial back bets on near-term Federal Reserve rate cuts, lifting the opportunity cost of holding non-yielding assets.
The move kept risk sentiment fragile after bitcoin’s recent rebound from the low-$60,000s failed to hold above $70,000.
Market watchers are also eyeing the next inflation print, which could further reset rate expectations.
Broader crypto tracked lower too, with ether and other major tokens falling alongside bitcoin amid thin liquidity and muted institutional demand.
Futures markets now price the Fed on hold until June after three cuts late in 2025.
Kraft Heinz hits pause on breakup plans
Kraft Heinz hit the brakes on its planned breakup, with new CEO Steve Cahillane declaring the company’s problems “fixable” and requiring all resources to be focused on returning to growth.
The surprise reversal came just weeks after Cahillane took over January 1st, hired specifically to oversee the split into two separate companies, a decision announced in September to dismantle the troubled $46 billion merger from a decade ago.
Sales dropped 3.4% to $6.35 billion in Q4, marking the ninth consecutive quarterly decline, while deteriorating consumer sentiment and pricing pressures have worsened since the separation announcement.
Cahillane wants to avoid “dis-synergies” from splitting while the business hemorrhages.
Taiwan eyes US rare earths
Taiwan will dispatch officials to evaluate US rare earth deposits, aiming to refine critical minerals domestically and reduce reliance on China’s stranglehold over global supply chains.
Economy Minister Kung Ming-hsin said the Geological Survey and Mining Management Agency would assess whether American deposits contain the specific rare earth elements Taiwan actually needs.
The island consumes 1,500 metric tonnes annually, expected to rise to 2,000 tonnes with economic growth, and plans to build a pilot-scale refining line within three years to meet half of domestic demand.
Taiwan’s involvement comes after Trump launched Project Vault, a $12 billion strategic minerals stockpile, following China’s export restrictions last year that rattled automakers and defense industries.
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