Stock Market Today: S&P 500, Nasdaq Drift Near Record Levels as Dow Falls Following Key Jobs Data

U.S. stock markets experienced a mixed day as the S&P 500 and Nasdaq hovered near record highs, buoyed by a tech rally, while the Dow Jones Industrial Average fell following the release of key jobs data. Federal Reserve Chair Jerome Powell's optimistic remarks about the economy contributed to the market's overall sentiment.

Key Takeaways

• The S&P 500 and Nasdaq reached new record highs, while the Dow fell.
• Federal Reserve Chair Jerome Powell indicated the economy is in "remarkably good shape."
• A tech rally led by major companies like Amazon and Nvidia boosted market performance.
• The labor market showed signs of softening, but wage growth remains strong.

Market Performance Overview

On Wednesday, the Dow Jones Industrial Average (^DJI) rose approximately 0.7%, closing above 45,000 for the first time. The S&P 500 (^GSPC) gained about 0.6%, reaching a new closing high of 6,086.49, while the Nasdaq Composite (^IXIC) increased by 1.3%, closing at 19,735.12.

Major Contributors to Market Gains

• Amazon (AMZN): Reached all-time highs, driven by positive sentiment around its cloud services.
• Apple (AAPL): Also hit intraday highs, reflecting strong consumer demand.
• Nvidia (NVDA): Gained over 3%, nearing its record high, as interest in AI technology surged.
• Salesforce (CRM): Surged 11% after reporting better-than-expected quarterly revenue, boosting confidence in its AI products.

Federal Reserve Insights

During the New York Times DealBook Summit, Powell expressed confidence in the U.S. economy, stating it is in "remarkably good shape." He suggested that the Federal Reserve could afford to be cautious in its approach to interest rate cuts, with expectations for a reduction at the upcoming December meeting.

• Interest Rate Expectations: Traders are anticipating a 25 basis point cut, with odds now at 77%, up from 67% a week prior.

Labor Market Dynamics

Recent data from ADP indicated that while the labor market is softening, it remains relatively tight. Key findings include:

• Wage Growth: The median year-over-year pay increase for job switchers rose to 7.2% in November, up from 6.7% in October.
• Job Stayers: Experienced a slight increase in wage growth, marking the first rise in 25 months.

Corporate News Highlights

• UnitedHealth Group (UNH): The company halted its investor day following the tragic shooting of CEO Brian Thompson in Manhattan.
• Foot Locker (FL): Shares fell 12% after the retailer cut its full-year guidance, citing weakened consumer demand.

Looking Ahead

As investors await the monthly jobs report on Friday, the market remains focused on economic indicators that could influence the Federal Reserve's monetary policy. The last Fed rate policy meeting of the year is scheduled for December 18, where further insights into the economy's trajectory will be revealed.

In summary, while the S&P 500 and Nasdaq are thriving, the Dow's decline highlights the mixed signals in the current economic landscape. Investors are keenly watching for further developments in both the labor market and Federal Reserve policies as they navigate the final weeks of the year.

Sources

• Stock market today: Nasdaq, Dow, S&P 500 hit records as tech surges, Fed's Powell says economy in 'remarkably good shape', Yahoo Finance.
• Stock market today: Nasdaq, Dow, S&P 500 hit records as tech surges, Fed's Powell says economy in 'remarkably good shape', Yahoo Finance.
• Stock market today: Nasdaq, Dow, S&P 500 hit records as tech surges, Fed's Powell says economy in 'remarkably good shape', Yahoo Finance.
• Stock market today: Nasdaq, Dow, S&P 500 hit records as tech surges, Fed's Powell says economy in 'remarkably good shape', Yahoo.
• Stock market today: Nasdaq, Dow, S&P 500 hit records as tech surges, Fed's Powell says economy in 'remarkably good shape', Yahoo.