U.S. stocks React to weak Employment Data and Fed Concerns
U.S. stocks finished mixed on Wednesday.A disappointing private payrolls report and the Federal Reserve’s cautious economic outlook caused worries about growth, inflation, and tariffs.
The Dow Jones Industrial Average ended lower by 0.22%, breaking a four-day winning streak. The S&P 500 was nearly flat, while the Nasdaq Composite gained 0.32%, closing at 19,460.49.
Wednesday’s trading sentiment was affected by a weak ADP employment report. It showed private payrolls increased by only 37,000 in May, much lower than expected. This coudl push the Federal Reserve to cut interest rates. The 10-year Treasury yield fell to 4.349%, its lowest since early May.
The Fed’s Beige Book, released Wednesday, reported a slight decline in U.S. economic activity over the past six weeks. Hiring was mostly flat as businesses delayed expansion due to policy uncertainty and tariff-related costs.
- All Fed Districts reported high economic and policy uncertainty.
- Businesses expect costs and prices to rise faster.
- Tariffs were mentioned 122 times, up from 107 in April.
Regions like Boston, New York, and Philadelphia saw declines in activity. However, Richmond, Atlanta, and Chicago reported modest growth. hiring remained cautious even in stronger districts.
