The Dow Jones Industrial Average rose 133.86 points, or 0.35 percent, to 38,467.31. The S&P 500 dipped 2.96 points, or 0.06 percent, to 4,924.97. The Nasdaq Composite Index shed 118.15 points, or 0.76 percent, to 15,509.9.
Six of the 11 primary S&P 500 sectors ended in green, with financials and energy leading the gainers by adding 1.20 percent and 1.01 percent, respectively. Meanwhile, real estate and technology led the laggards by dropping 0.91 percent and 0.74 percent, respectively.
The U.S. labor market is showing signs of a gradual slowdown, as indicated by a recent Labor Department report on Tuesday. The ratio of job openings to unemployed individuals remained constant from November at 1.44, a decrease from the two jobs per unemployed person ratio observed in March 2022, around the time the Federal Reserve began to raise interest rates. According to the report, job vacancies rose by 101,000 to reach 9.026 million on the final day of December, signaling sustained labor demand.
The Federal Reserve's two-day policy meeting takes center stage Wednesday, with investors glued to every update. While CME FedWatch forecasts a rate hike is highly unlikely, all eyes are on the closing statement for any hints about future policy changes.
"The Fed should not be cutting rates nearly as much as what the markets are thinking. My biggest fear is that they do cut rates and then inflation starts to pick back up again," said Paul Nolte, senior wealth adviser and market strategist at Murphy & Sylvest.
General Motors roared above the market with its shares jumping 7.8 percent after surpassing profit targets. F5 Networks secured a 1 percent gain thanks to solid financials, while Sanmina skyrocketed 28 percent on stellar earnings and optimistic guidance. Whirlpool, however, plunged 6 percent as its full-year outlook fell short of expectations. JetBlue's 2024 forecast of stagnant revenue and rising costs sent its stock down 4 percent.
Microsoft, Alphabet, and AMD face the earnings spotlight after the bell on Tuesday, while Apple, Amazon, and Meta are on Thursday's docket. Investors eagerly await their performance, particularly focusing on Microsoft's AI strategy and monetization plans.
Latest comments