U.S. stocks ended largely unchanged on Wednesday as investors grappled with mixed economic signals and potential inflationary risks tied to incoming Trump administration policies. Conflicting jobs data added to the uncertainty, with a sharp slowdown in private payroll growth contrasting with a drop in weekly jobless claims.
The Dow rose 0.25%, the S&P 500 gained 0.16%, while the Nasdaq dipped 0.06%. Healthcare led sector gains in the S&P 500, while small-cap stocks, represented by the Russell 2000, fell 0.52%. Megacap stocks were mixed: Microsoft gained 0.52%, but Alphabet and Meta fell 0.79% and 1.16%, respectively.
Key highlights included a CNN report suggesting Trump might invoke a national economic emergency to implement tariffs, raising inflation concerns. Bond markets reacted, with the 10-year Treasury yield peaking at 4.73%. Fed officials also noted risks of persistent price pressures, though Governor Christopher Waller expressed optimism about inflation easing in 2025.
EBay surged 9.86% after Meta announced plans to feature its listings on Facebook Marketplace. Conversely, quantum computing stocks plunged over 40% following Nvidia CEO Jensen Huang’s remarks that practical quantum computing is decades away.
Market sentiment remained fragile, with declining issues outpacing advancers on both the NYSE and Nasdaq. Trading volume reached 15.86 billion shares, exceeding the 20-day average. Markets will close Thursday for a national day of mourning for former President Jimmy Carter.
