COLUMBUS, Wis., March 06, 2026 (GLOBE NEWSWIRE) — Michael Eisenga, CEO of 1st American Properties, today issued the following commentary in response to the February 2026 U.S. Employment Situation Report, which revealed an unexpected decline in job growth and raised new concerns about economic momentum.
The report showed nonfarm payrolls declining by 92,000 jobs, a surprise contraction in a labor market economists widely expected to expand. The unemployment rate rose to 4.4%, while average hourly earnings increased 3.8% year-over-year, indicating wage pressures remain even as hiring slows. Labor force participation held near 62.0%.
“Today’s jobs report was a genuine shock to markets,” said Eisenga. “A decline of this magnitude is one of the weakest readings since the pandemic and suggests the labor market may be cooling faster than investors anticipated.”
Several sectors contributed to the decline in payrolls. Health care employment fell by 28,000 jobs, largely tied to “strike activity”, while information and technology lost 11,000 positions and federal government employment declined by 10,000. Manufacturing and transportation also weakened. The only notable gain came from social assistance, which added roughly 9,000 jobs.
Revisions to prior months further underscored the slowdown. December payrolls were revised down by 65,000 jobs and January was lowered by 4,000 jobs. As a result, job creation over the past three months has averaged roughly 6,000 per month, effectively signaling a near stall in employment growth.
According to Eisenga, the market reaction reflects more than investor sentiment, as algorithmic and systematic trading strategies increasingly amplify market moves.
“Much of the selling we’re seeing isn’t emotional — it’s mechanical,” Eisenga said. “Large institutional funds rely on volatility-targeting models, risk-parity strategies, and trend-following algorithms. When economic data raises volatility or pushes markets below key technical levels, these systems automatically reduce equity exposure.”
Such strategies can trigger large-scale selling programs, potentially involving tens of billions of dollars in equities even when the initial market move is modest.
Eisenga also pointed to signals coming from the bond market. Treasury yields have been drifting lower in recent weeks, which historically reflects expectations for slower economic growth ahead.
“The bond market often detects economic shifts earlier than equities,” he said. “If bonds are correct about weakening growth, it suggests stocks may still be too optimistic about the economic outlook.”
At the same time, rising geopolitical tensions are adding another layer of economic uncertainty. Oil prices recently surged to their highest level in nearly two years amid a widening conflict involving Iran. Brent crude crossed $90 per barrel for the first time since April 2024, while West Texas Intermediate (WTI) crude jumped more than 8% to settle between $81 and $88 per barrel following reports of a missile strike on an oil tanker.
The combination of a slowing labor market and rising energy-driven inflation has begun to raise concerns about stagflation, a difficult environment for the Federal Reserve to manage with interest rate policy.
Despite the weaker employment data, wage growth remains positive, suggesting labor demand has not collapsed entirely. However, the report could influence monetary policy expectations.
“Unfortunately, today’s data increases the likelihood that the Federal Reserve pauses interest rate policy in the near term,” Eisenga said. “If labor conditions continue to soften, the probability of rate cuts later in 2026 will rise.”
Eisenga believes the report could mark an important inflection point for financial markets.
“My broader macro view is that economic momentum is rolling over and liquidity conditions are tightening,” he said. “If upcoming economic data continues to weaken, risk assets, including equities, may face additional downside as institutional investors reposition.”
The February employment report suggests the U.S. labor market may be cooling faster than expected, raising new questions about the durability of the economy. While wage growth remains stable, slowing hiring and increased systematic trading activity could contribute to heightened market volatility in the months ahead.
About First American Properties
First American Properties is a privately held investment and real estate management firm headquartered in Columbus, Wisconsin. The firm specializes in strategic asset acquisition, development, and portfolio management across diverse sectors of the U.S. economy.
Disclaimer: This press release is for informational purposes only and does not constitute investment advice. Forward-looking statements are subject to risks and uncertainties.
Media Contact:
First American Properties
Michael Eisenga, CEO
meisenga@firstamericanusa.com
(920) 350-5754
