Highlights
Stocks seesawed in slim ranges to end narrowly mixed Wednesday with weakness in megacaps dampening the major indexes and the market failing to bounce back after a broad, heavy selloff Tuesday.
Investors were coping with a range of contradictory signals Wednesday. These included renewed worries about tariffs after a CNN report the Trump administration may declare an economic emergency to expedite imposing big trade barriers. On the positive side for stocks were early comments from Federal Reserve Governor Christopher Waller seen on the dovish side. On the other hand, December FOMC minutes appeared to focus on lingering inflation worries and confirmed expectations for no rate cut in January.
Employment figures featured a much lower than expected jobless claims, but also lower than expected ADP employment figures. On the other hand, a US Treasury auction of 30-year bonds saw strong demand, which pushed bond yields lower. A stock trading holiday Thursday leaves the market to await Friday's employment and consumer sentiment reports, plus more Fed comments.
Among sectors Wednesday, best were airlines, health care, homebuilders, beverages, software, and aerospace & defense. Lagging were chipmakers, energy, chemicals, utilities, steel, food, restaurant chains, and auto suppliers.
Investors were coping with a range of contradictory signals Wednesday. These included renewed worries about tariffs after a CNN report the Trump administration may declare an economic emergency to expedite imposing big trade barriers. On the positive side for stocks were early comments from Federal Reserve Governor Christopher Waller seen on the dovish side. On the other hand, December FOMC minutes appeared to focus on lingering inflation worries and confirmed expectations for no rate cut in January.
Employment figures featured a much lower than expected jobless claims, but also lower than expected ADP employment figures. On the other hand, a US Treasury auction of 30-year bonds saw strong demand, which pushed bond yields lower. A stock trading holiday Thursday leaves the market to await Friday's employment and consumer sentiment reports, plus more Fed comments.
Among sectors Wednesday, best were airlines, health care, homebuilders, beverages, software, and aerospace & defense. Lagging were chipmakers, energy, chemicals, utilities, steel, food, restaurant chains, and auto suppliers.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
