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The S&P 500 posted a modest gain on Wednesday as traders assessed the potential for future Federal Reserve rate cuts amid persistent inflationary pressures.
The Dow Jones Industrials moved ahead 106.84 points to 42,635.20.
The much-broader index recovered 9.22 points to 5,918.25.
The NASDAQ Composite dropped 10.8 points to 19,323.19. The three major averages are on pace for a second straight weekly loss.
Markets in the U.S. will be closed Thursday, as the nation mourns former President Jimmy Carter.
Palantir — one of the biggest gainers in the S&P 500 in 2024, rising more than 340% — was down for a third straight day, losing 2.5%. Chipmaker Advanced Micro Devices shed 4.3% after a downgrade by HSBC.
Stocks are coming off a rough trading session, as the major averages finished solidly in the red after strong economic data showed greater-than-expected expansion in the U.S. services sector, fanning concerns around stubborn inflation and this year’s trajectory of Federal Reserve rate cuts. Markets reportedly are currently pricing in a 95% chance of no reductions at the central bank’s meeting this month.
Data released Wednesday morning showed private sector job creation in December eased more than expected, while wages grew at the slowest pace since July 2021, according to payment processing firm ADP. Investors are now turning to minutes from the Fed’s December meeting are slated for release at 2 p.m. ET.
Sentiment was also dampened after reports President-elect Donald Trump is considering declaring a national economic emergency to push through new tariffs.
Prices for the 10-year Treasury gained, lowering yields to 4.68% from Tuesday’s 4.69%. Treasury prices and yields move in opposite directions.
Oil prices lost 95 cents to $73.20 U.S. a barrel.
Prices for gold moved ahead $15.10 an ounce to $2,680.50 U.S.
