US stocks fall after biggest 2-day rally since 2020 as investors assess Fed path and new payroll data
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- US stocks fell Wednesday, reversing course after a huge two-day surge on Wall Street.
- Investors assessed ADP's September report that showed an increase of 208,000 private-sector jobs.
- Oil edged up as OPEC+ considered a hefty cut in production.
US stocks fell Wednesday following sharp gains in the previous two sessions as fourth-quarter trading got underway, with investors assessing private-sector hiring data that came in above expectations while keeping watch on the oil market as OPEC + meets.
The S&P 500 was handing back a portion of the 5.7% it had piled on during Monday and Tuesday's sessions, an advance fueled by revived expectations that the Federal Reserve and other central banks would pivot away from aggressive rate hikes as economic data soften. The index's back-to-back gains were the largest since April 2020, when the COVID-19 crisis was accelerating worldwide. Stocks during the rally benefitted in part from a decline in Treasury yields, but yields were moving higher again on Wednesday.
Investors on Wednesday received ADP's report showing hiring by private-sector employers in September increased by 208,000 jobs. An Econoday consensus estimate called for an increase of 200,000 jobs. The report was the second under ADP's new methodology and it arrived ahead of Friday's September nonfarm payrolls report by the US government, data that will feed into the Fed's thinking on interest rates and the health of the economy. September job gains were made as schools reopened and pandemic concerns receded, ADP said.
Oil prices were slightly higher ahead of a potential decision by OPEC and its allies to cut production by up to 2 million barrels a day. Crude had gained more than 8% to start the week in anticipation of the latest decision by OPEC+, Bespoke Investment Group noted.
Here's where US indexes stood at the 9:30 a.m. opening bell on Wednesday:
- S&P 500: 3,748.34, down 1.12%
- Dow Jones Industrial Average: 30,023.29, 0.97% (293.03 points)
- Nasdaq Composite: 11,035.37, down 1.26%
Here's what else is happening today:
- The White House, as US gas prices edge higher, has reportedly asked the Energy Department to look into whether a ban on exports of gasoline would pull down costs at the pump for American drivers.
- Elon Musk will have to offload more Tesla shares to fund his takeover of Twitter and that could lead to the electric vehicle maker's stock falling further, said Wedbush's Dan Ives.
In commodities, bonds and crypto:
West Texas Intermediate crude gained 1.7% to $84.35 per barrel. Brent crude, the international benchmark, rose 0.2% at $91.94.
Gold fell 1% to $1,713.40 per ounce. The 10-year Treasury yield rose six basis points to 3.7%.
Bitcoin fell 1.7% to $20,001.11.
from Business Insider https://ift.tt/wGfMmJo
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