Major large-cap stock indices hovered around parity during early afternoon trading in New York, in a rather subdued trading session on Wall Street.
Traders are grappling with mixed sentiments in the wake of weaker-than-expected ADP employment data from the previous month, hinting at a potential cooling in labor market conditions. This uncertainty looms large ahead of Friday’s eagerly anticipated jobs report.
The prospect of a softer labor market could indeed fuel expectations of future interest rate cuts by the Federal Reserve, but it also raises concerns about weakening household demand, which could cast a shadow on corporate sales and earnings.
In this climate of uncertainty, investors are flocking to haven assets such as Treasuries and gold, while taking a more cautious stance on stocks.
The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT), which tracks the performance of long-dated Treasury securities, surged by 1.4%, building on Tuesday’s impressive gain of 2.5%.
On the flip side, oil prices tumbled, with West Texas Intermediate (WTI) crude slipping below the $70 per barrel mark. This marks the lowest level seen since early July 2023, as traders continue to question the effectiveness of OPEC’s production cuts and grapple with growing concerns of a global economic slowdown.
Energy stocks, as reflected by the Energy Select Sector SPDR Fund (NYSE:XLE), emerged as Wednesday’s notable underperformers, down by 1.8%.
Bitcoin (CRYPTO: BTC) flattened after crossing the $44,000 milestone, propelling its total market capitalization to an impressive $860 billion
Wednesday’s Performance of US Indices
| Index | Performance (+/-) | Value |
| Nasdaq 100 | -0.09% | 15,864.12 |
| S&P 500 Index | -0.06% | 4,574.00 |
| Dow Industrials | +0.06% | 36,142.17 |
| Russell 2000 | +0.77% | 1,870.37 |
The SPDR S&P 500 ETF Trust (ARCA: SPY) edged 0.1% lower to $456.18.
The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) was steady at $362.10.
The Invesco QQQ Trust (NASDAQ: QQQ) eased 0.1% to $386.79
The iShares Russell 2000 ETF (NYSE:IWM) rose 0.8% to $185.77, according to Benzinga Pro data.
Chart Of The Day: Bonds On The Launching Pad
Sector, Industry ETF Performance
Aside from the energy sector’s underperformance, other laggards were the Technology Select Sector SPDR Fund (NYSE:XLK) and the Consumer Staples Select…
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