The US equity markets experienced a decline as major technology and communication service companies faced considerable losses. The S&P 500 index fell by 0.7%, closing at 5,931.6, while the Nasdaq Composite saw a more significant drop of 1.5%, settling at 19,563.4. In contrast, the Dow Jones Industrial Average registered a minor decrease of 0.1%, reaching 42,674.4.
The steepest declines were observed in the communication services and technology sectors, although the energy sector managed to record gains during the trading session. Among the worst performers, Nvidia saw a substantial decline, down 5.5%, while Palantir dropped by 6.5% within the S&P 500 and Nasdaq Composite.
Additionally, Tesla joined the group of underperformers on the S&P 500, with a slump of 4.3% after it had previously closed at an all-time high on Monday. On the economic front, the Bureau of Labor Statistics reported that job openings surged to 8.098 million in November, surpassing analyst expectations of 7.74 million.
This figure marks an increase from the 7.839 million openings recorded in October, indicating a robust job market. Further data from the Institute for Supply Management revealed that the US services index rose to 54.1 in December, up from 52.1 in November, exceeding expectations of 53.5 in a Bloomberg-compiled survey.
This growth in the services sector underscores the continued resilience of the US economy. In the bond market, most US Treasury yields experienced an uptick, with the 10-year yield climbing by 6.1 basis points to 4.68%. The two-year yield also advanced, increasing by 1.3 basis points to 4.28%. On the commodities side, West Texas Intermediate crude oil futures edged upward by 0.9%, reaching $74.24 a barrel.
This increase reflects ongoing fluctuations in energy markets amid broader economic indicators. Overall, while the equity markets faced headwinds from key players in the tech sector, encouraging job data and a growing services index highlight an underlying strength in the US economy..