On Wednesday, the Dow Jones Industrial Average and Nasdaq Composite saw slight increases as traders evaluated recent economic data alongside comments from a Federal Reserve official. The Dow managed a gain of 0.1%, closing at 42,196.5, while the tech-rich Nasdaq also rose by 0.1%, ending at 17,925.1.
The S&P 500 remained relatively unchanged at 5,709.5. Among sectors, energy emerged as the top performer, while the consumer discretionary and consumer staples segments incurred the most significant losses. In the realm of economic updates, employment growth within the U.S. private sector experienced an upswing in September, even as wage growth showed signs of cooling, according to findings from Automatic Data Processing.
TS Lombard conveyed in a recent note, "One should never put too much into the monthly ADP report. That it came in above expectations raises the probability that the Bureau of Labor Statistics numbers on Friday will fall short." The upcoming data from BLS is anticipated to reveal that the U.S. economy generated 150,000 nonfarm jobs in the previous month, marking an increase from August’s reported gain of 142,000, per a Bloomberg survey. Additionally, mortgage applications across the U.S.
showed a decline last week, as elevated interest rates dampened refinancing activities, according to the Mortgage Bankers Association. The yield on the U.S. 10-year note rose by four basis points, reaching 3.78%, while the two-year yield saw an increase of 1.4 basis points, settling at 3.64%. Richmond Fed President Tom Barkin highlighted the persistent "significant uncertainty" surrounding inflation and the labor market in the U.S., suggesting that annual core prices are unlikely to decline substantially until next year.
In a notable move last month, the Federal Open Market Committee reduced its benchmark lending rate by 50 basis points, marking its first cut since March 2020. "As we decide how fast to move and how far to go during this rate-reduction cycle, we are just going to need to be attentive and learn as we go," Barkin remarked on Wednesday. In commodity market news, West Texas Intermediate crude oil prices rose by 1.6%, reaching $70.96 a barrel, propelled by unexpected increases in U.S.
commercial crude stockpiles. Notably, crude futures previously recorded substantial gains on Tuesday amid escalating geopolitical tensions in the Middle East. In corporate developments, Caesars Entertainment announced plans to offer $1 billion in senior notes due in 2032 through a private placement, resulting in a 5.3% uptick in the company's stock, positioning it as the leading gainer on the S&P 500.
Conversely, Humana's shares plummeted nearly 12%, marking it as the worst performer on the S&P 500. The health insurer indicated a sharp decline in members enrolling in 2025 Medicare Advantage plans with four-star ratings or higher, which could impact 2026 revenues and bonus payouts. Nike also faced significant declines, experiencing a 6.8% drop, becoming one of the largest decliners on both the Dow and S&P 500.
The sportswear company withdrew its full-year guidance and postponed its investor day following the announcement of a new chief executive. The company's fiscal Q1 performance revealed a year-over-year decrease. In precious metals, gold witnessed a slight decrease of 0.4%, landing at $2,679.90 per troy ounce, while silver saw an increase of 1.1%, closing at $32.1 per ounce..