Microsoft fell 1.6 per cent and was the heaviest weight on the S&P 500. Nvidia slipped just 0.6 per cent, but because it’s the most valuable stock on Wall Street, it was another one of the heaviest weights dragging on the index.
CrowdStrike slipped 0.3 per cent despite topping analysts’ expectations for profit. It too came into the day with a big gain for the year so far, raising the stakes, at 51 per cent.
In the bond market, Treasury yields eased after a report suggested US employers outside of the government may have cut more jobs in November than they added.
The data from ADP was much weaker than economists expected, but it has not had a perfect track record predicting what the more comprehensive jobs report from the US government will say each month.
Wednesday’s data may be discouraging for people looking for jobs, but it also keeps alive expectations that the Federal Reserve will cut its main interest rate next week. If the Fed does, that would be the third such cut this year in hopes of bolstering the slowing job market.
A report later in the morning on activity for US services business was more encouraging. It said growth was stronger last month than expected for businesses in the retail, finance, insurance and other industries.
Perhaps just as important was that the Institute for Supply Management’s survey also said prices were increasing at their slowest rate since April. That could help the Fed because fears of high inflation are the main argument against cutting interest rates.
The yield on the 10-year Treasury fell to 4.07 per cent from 4.09 per cent late Tuesday.
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Easing bond yields can boost prices for all kinds of investments, and bitcoin climbed again to top $US92,000 following its scary downward run in recent weeks. It briefly plunged below $US81,000 last month.
In stock markets abroad, indexes were close to flat in Europe following a mixed finish in Asia.
Japan’s Nikkei 225 jumped 1.1 per cent on gains for technology stocks like Tokyo Electron, which jumped 4.7 per cent. SoftBank Group Corp. leaped 6.4 per cent following reports that its founder, Masayoshi Son, regretted having to sell shares in computer chipmaker Nvidia to help pay for other investments.
Chinese indexes sank following the release of data showing weaker factory activity. Stocks fell 1.3 per cent in Hong Kong and 0.5 per cent in Shanghai.
AP
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