US benchmark equity indexes closed mixed on Wednesday, reflecting traders' analysis of the latest labor market data and minutes from the Federal Reserve's December meeting. The Dow Jones Industrial Average saw a modest increase of 0.3%, rising to 42,635.2, while the S&P 500 increased by 0.2% to 5,918.3.
In contrast, the Nasdaq Composite experienced a slight decline, falling 0.1% to 19,478.9. The healthcare, materials, and consumer staples sectors showcased the strongest performances among various segments, whereas the communication services sector was the only one that posted a significant drop. U.S.
stock markets will observe a closure on Thursday in honor of former President Jimmy Carter during a National Day of Mourning. On the economic front, private sector employment in the U.S. saw an increase of 122,000 jobs in December, as reported by Automatic Data Processing (ADP). This figure fell short of the anticipated 139,000 job increase foretold by a Bloomberg survey. Nela Richardson, the chief economist at ADP, commented on the situation, stating, "The labor market downshifted to a more modest pace of growth in the final month of 2024 with a slowdown in both hiring and pay gains." Interestingly, the government data indicated an unexpected drop in weekly applications for unemployment insurance, yet a rise in continuing claims was reported. Coming up on Friday, data from the Bureau of Labor Statistics is expected to reveal that the U.S.
economy added 163,000 nonfarm jobs last month, marking a decrease from the 227,000 job gain recorded the prior month, according to a survey compiled by Bloomberg. In the bond market, the U.S. two-year yield fell by 2.1 basis points to 4.27%, while the 10-year rate declined by one basis point to 4.68% on Wednesday.
Reports from the central bank's December 17-18 meeting disclosed that almost all Federal Open Market Committee (FOMC) members expressed concerns over increased upside risks to their inflation expectations due to strong price growth data and the potential impact of changes in trade and immigration policies. During this meeting, the FOMC decided to lower its benchmark lending rate by 25 basis points and indicated a projection of fewer cuts moving forward compared to September. Fed Governor Christopher Waller noted on Wednesday that he anticipates inflation to decrease towards the policymakers' target of 2% over the medium term, stating that further monetary policy easing will be "appropriate." Waller remarked, "After a period of rapid disinflation in 2022 and 2023, progress appears to have stalled in the final months of 2024." Market analysts widely expect that the FOMC will maintain interest rates unchanged later this month, as per indications from the CME FedWatch tool. In commodity markets, West Texas Intermediate crude oil saw a decline of 1.2%, trading at $73.36 per barrel on Wednesday. In corporate news, Meta Platforms announced its plans to launch a test in the U.S., France, and Germany allowing buyers to browse eBay listings on Facebook Marketplace, with the capability to complete transactions on eBay.
Following this announcement, eBay shares skyrocketed by 9.9%, making it the top gainer in the S&P 500, whereas Meta's shares dipped by 1.2%. Also in company news, Boston Scientific's shares saw a rise of 4.3%, standing as the second-largest increase on the S&P 500, fueled by the company's decision to acquire the remainder of Bolt Medical for $443 million, alongside milestone payments anticipated. Conversely, Edison International's shares plummeted by 10%, marking the steepest decline on the S&P, amid ongoing wildfires in Los Angeles.
The company's Southern California Edison unit serves as the primary power utility for communities surrounding the city. In other stock movements, Moderna's shares recorded a decrease of 9.2%, which was the second most significant drop among S&P 500 stocks, following UBS's adjustment of its price target for the drugmaker's shares to $96 from an earlier $108. In the precious metals market, gold prices edged up by 0.6% to $2,680.60 per troy ounce, while silver prices experienced a marginal increase of 0.2%, settling at $30.76 per ounce..