Wednesday saw a fall in the major US market indexes as investors processed dismal private payroll data. Additionally, a federal government shutdown raised concerns about the central bank’s next policy decision by potentially delaying economic data. After the ADP National Employment Report revealed that private payrolls fell the most in two-and-a-half years in September, traders dramatically upped their bets on a 25 basis point rate cut by the US Federal Reserve at its next meeting.
Data must be both solid enough to prevent escalating concerns of a wider economic recession and soft enough to justify rate reduction, so the labor market is treading carefully. According to Jamie Cox, managing partner of Harris Financial Group, “ADP may be a closer indicator of the true level of employment for the first time.” “The Trump administration’s policies aim to shift a large portion of the public sector’s job growth into the private sector.” At 10:08 a.m. ET, the S&P 500 dropped 21.64 points, or 0.32%, to 6,666.82, the Nasdaq Composite dropped 93.94 points, or 0.41%, to 22,565.63, and the Dow Jones Industrial Average dropped 62.56 points, or 0.14%, to 46,335.33.
The S&P 500’s communication services shares dropped 1.5%, driven primarily by losses in Alphabet and Meta Platforms, which lost 1.1% and 2.8%, respectively. The Nasdaq was also affected by the stocks. Nvidia saw a 0.9% decline, while the S&P 500 tech sector saw a 0.4% decline. The healthcare industry was up 1.4% and reached a five-month high. Both Moderna and Regeneron were among the benchmark index’s top performers, rising more than 6.3%. The severe party divide in Washington that resulted in a federal government shutdown added to the unpredictability.
Also Read:
The Largest District Cooling Project in the World was Launched
After a School Collapse, Indonesian Rescuers Search for 38 Missing People
About Author
