Overview
The U.S. stock market showed a mixed response today as signals of a labor market slowdown emerged, although no significant deterioration was evident. Market participants remained cautious regarding potential short-term interest rate cuts, leading to a downward trend in equities and unstable bond markets. Despite a boost from large orders that lifted the S&P 500 index from its intraday low, the index struggled to find a clear upward momentum.
| Nasdaq Composite | S&P 500 |
| Dow Jones Industrial Average | 1 South Korean won equals |
Major News Story
The private sector employment, which had decreased by 105,000 in the previous month, showed a recovery with an increase of 64,000 jobs in November. However, the unemployment rate rose to 4.6% in November, marking its highest level since 2021. Despite these employment figures, predictions for a Federal Reserve rate cut next month saw little change. Investors anticipate the Fed might cut rates twice next year, exceeding its current projections. Analysts suggest the Fed may not heavily weigh today's data, focusing instead on the January employment report.
Tomorrow's Economic Indicators
| Time | Event |
|---|---|
| 9:00 PM | U.S. MBA Mortgage Applications |
| 9:30 PM | U.S. EIA Crude Oil Stocks Change |
| 10:00 PM | U.S. 20-Year Bond Auction |
| 10:15 PM | Fed's Governor Waller Speech |
| 10:35 PM | Fed's Chair Williams Speech |
| 11:30 PM | Fed's President Bostic Speech |
General Opinion
While some analysts believe the Fed will not place much emphasis on today's employment data, others warn against prematurely expanding expectations from the report. As discussions around the Federal Reserve's future actions continue, the employment report has sparked debates within the Fed, reflecting divided opinions on data reliance.
