U.S. Stocks propel on Weak Job Report adn Fed Concerns
U.S. stocks concluded Wednesday with mixed performance. The Dow Jones Industrial Average fell by 91.90 points, or 0.22%, breaking a four-day winning streak. Simultaneously occurring, the S&P 500 stayed nearly flat, and the Nasdaq Composite edged up by 0.32%, closing at 19,460.49.
Market sentiment took a hit due to the disappointing ADP employment report. Private payrolls increased by just 37,000 in May, far below forecasts. This could prompt the Federal Reserve to lower interest rates. The 10-year Treasury yield fell to 4.349%, its lowest as early May.
The Fed’s Beige Book, released Wednesday, highlighted economic concerns. It reported a slight dip in U.S. economic activity over six weeks. Hiring was mostly stagnant as business owners delayed expansion due to policy uncertainty and tariff-related costs.
- The report noted “all Districts” had high economic and policy uncertainty.
- Businesses expect costs and prices to rise faster in the future.
Tariffs were cited 122 times in the Beige Book, an increase from 107 in April. Boston, New York, and philadelphia saw declines in activity. However, richmond, Atlanta, and Chicago reported modest growth.hiring was still cautious.
