Traders work on the floor of the New York Stock Exchange in New York City.
Michael M. Santiago | Getty Images
U.S. stocks wavered on Wednesday as traders struggled to recover from a sharp tech-led decline in the previous session.
The Dow Jones Industrial Average added 21 points, or 0.1%. The S&P 500 gained 0.1%, while the Nasdaq Composite traded higher by 0.1%. The three major averages are tracking for a second straight weekly loss.
Palantir, one of the biggest gainers in the S&P 500 last year rising more than 340%, was down for a third straight day, losing more than 4%. Chipmaker Advanced Micro Devices shed about 5% after a downgrade by HSBC.
Data released Wednesday morning showed private sector job creation in December eased more than expected, while wages grew at the slowest pace since July 2021, according to payment processing firm ADP. Investors are awaiting minutes from the Fed’s December meeting, slated for release at 2 p.m. ET.
Sentiment on Wednesday was also dampened after CNN reported, citing sources, that President-elect Donald Trump is considering declaring a national economic emergency to push through new tariffs.
“There’s definitely been some profit-taking. There’s been reallocation as equities have become a bigger part of a lot of people’s portfolios,” said Sarat Sethi, managing partner at DCLA. He added that the market could see “some potential pockets of volatility ahead” given the upcoming inauguration and the beginning of corporate earnings season.
Bond yields, which have been climbing on bets that Trump’s tariff and tax plans could lead to a spike in inflation, continued to climb. The rate on the benchmark 10-year note rose on Wednesday, at one point topping 4.7% and trading levels last seen in late April.
Stocks are coming off a rough trading session, as the major averages finished solidly in the red after strong economic data showed greater-than-expected expansion in the U.S. services sector, fanning concerns around stubborn inflation and this year’s trajectory of Federal Reserve rate cuts. According to the CME’s FedWatch tool, markets are currently pricing in a 95% chance of no reductions at the central bank’s meeting this month.
