On Wednesday, the US benchmark equity indexes displayed minor fluctuations as market participants assessed recent labor market data and comments made by a Federal Reserve governor. The Dow Jones Industrial Average, the S&P 500, and the Nasdaq Composite recorded figures of 42,555.1, 5,914.6, and 19,502.6, respectively, following midday trading.
Notably, the health care sector emerged as the frontrunner in gains, while utilities experienced the most significant declines. In observance of the passing of former President Jimmy Carter, US stock markets will be closed this Thursday. In terms of economic indicators, the latest from Automatic Data Processing revealed that private employment in the US grew by 122,000 jobs in December, falling short of the anticipated 139,000 increase projected in a Bloomberg survey.
Chief Economist Nela Richardson from ADP remarked, '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.' Contrary to expectations, weekly applications for unemployment insurance in the US saw an unexpected decline, while continuing claims witnessed an uptick, according to government data. The Bureau of Labor Statistics is set to publish a report this Friday, indicating that the US economy added 163,000 nonfarm jobs over the last month.
This figure would represent a decrease from the previously recorded gain of 227,000 jobs in the month prior, based on another Bloomberg compilation. Mortgage applications in the US decreased last week as the 30-year fixed rate for conforming loan balances escalated to its highest level since July, according to the Mortgage Bankers Association. In terms of yields, the US two-year yield fell by 1.2 basis points to 4.28% during Wednesday's trading session, while the 10-year rate remained relatively stable at 4.69%. Comments from Fed Governor Christopher Waller indicated his expectation that inflation will descend to the targeted 2% mark set by policymakers in the medium term, stating that 'further monetary policy easing will be appropriate.' He added, 'After a period of rapid disinflation in 2022 and 2023, progress appears to have stalled in the final months of 2024.' In corporate sector news, Meta Platforms announced its plan to initiate a test in the US, France, and Germany, allowing buyers to browse eBay listings on Facebook Marketplace before finalizing transactions directly on eBay.
Following this announcement, eBay's shares surged by 9.9%, taking the lead in gains among the S&P 500 companies, while Meta's shares experienced a 1% decline. Boston Scientific proved to be another victor, taking the second spot on the S&P 500 with a rise of 5.3%, after it declared its agreement to acquire Bolt Medical shares for $443 million, including milestone payments for shares it does not yet own. However, it wasn't all bright news, as shares of Edison International saw the most significant drop, plummeting by 12% on the S&P 500.
Similarly, Moderna saw its stocks decline by 8.2%, with UBS reducing its price target for the drug manufacturer's stock from $108 to $96. Additionally, West Texas Intermediate crude oil traded down by 1.3%, settling at $73.27 a barrel during the intraday session. In contrast, gold experienced a modest increase of 0.4%, reaching $2,674.80 per troy ounce, while silver rose slightly by 0.2% to $30.74 per ounce..