Stocks fluctuated over the course of the trading day on Wednesday before eventually ending the relatively lackluster session mixed.

While the Dow and the S&P 500 gave back ground after a positive start to the first full trading week of the new year, the tech-heavy Nasdaq showed a modest move to the upside.

The Nasdaq rose 37.10 points or 0.2 percent to 23,584.27, but the S&P 500 (SPI:SP500) fell 23.89 points or 0.3 percent to 6,920.93 and the Dow slid 466.00 points or 0.9 percent to 48,996.08.

The choppy trading on Wall Street came as traders took a step back to assess the recent strength in the markets, which lifted the Dow and the S&P 500 to new record closing highs on Tuesday.

Traders were also digesting the latest U.S. economic data, including a report from payroll processor ADP showing private sector employment increased by slightly less than expected in the month of December.

ADP said private sector employment rose by 41,000 jobs in December after falling by a revised 29,000 jobs in November.

Economists had expected private sector employment to climb by 47,000 jobs compared to the loss of 32,000 jobs originally reported for the previous month.

A separate report released by the Labor Department showed job openings in the U.S. fell by more than expected in the month of November.

On Friday, the Labor Department is scheduled to release its report on the employment situation in the month of December.

Economists currently expect employment to increase by 60,000 jobs in December after climbing by 64,000 jobs in November. The unemployment rate is expected to edge down to 4.5 percent from 4.6 percent.

Meanwhile, the Institute for Supply Management released a report showing an unexpected increase by its reading on U.S. service sector activity in the month of December.

The ISM said its services PMI climbed to 54.4 in December from 52.6 in November, with a reading above 50 indicating growth. Economists had expected the index to edge down to 52.3.

With the unexpected increase, the services PMI reached its highest level since hitting 56.0 in October 2024.

Sector News

Housing stocks moved sharply lower over the course of the session, dragging the Philadelphia Housing Sector Index down by 2.6 percent.

Interest rate-sensitive utilities stocks also came under pressure as the day progressed, resulting in a 2.3 percent slump by the Dow Jones Utility Average. The average ended the day at a six-month closing low.

Telecom, financial and oil service stocks also saw considerable weakness, while pharmaceutical, biotechnology and software stocks showed strong moves to the upside.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Wednesday. Japan’s Nikkei 225 Index slumped by 1.1 percent, while China’s Shanghai Composite Index inched up by 0.1 percent and South Korea’s Kospi climbed by 0.6 percent.

The major European markets also moved in opposite directions on the day. While the German DAX Index advanced by 0.9 percent, the French CAC 40 Index closed just below the unchanged line and the U.K.’s FTSE 100 Index slid by 0.7 percent.

In the bond market, treasuries moved notably higher in reaction to the latest U.S. economic data. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 4.1 basis points to 4.138 percent.

Looking Ahead

Trading on Thursday may be impacted by reaction to the latest U.S. economic data, including reports on weekly jobless claims and the U.S. trade deficit.

SOURCE: RTTNEWS

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