Wall St Mixed as Jobs Data, Oil Hit Sentiment
Key Points
- US stocks diverged Tuesday after a delayed November jobs report showed stronger hiring but a jump in unemployment to 4.6%.
- The Dow and S&P 500 slipped while the Nasdaq inched higher, helped by gains in large tech names including a record close for Tesla.
- Energy stocks fell sharply as WTI crude dropped below $55 a barrel to multi‑year lows, weighing on major producers.
- Investors are now watching upcoming inflation data and Fed commentary for clues on the pace of future interest‑rate cuts.
Indexes Split as Investors Digest Mixed Economic Signals
US equity markets ended Tuesday’s session mixed as investors weighed a delayed November jobs report alongside weak oil prices and soft retail data. The S&P 500 fell about 0.2% to 6,800.26, slipping to a three‑week low and remaining just below its record set last week. The Dow Jones Industrial Average dropped roughly 0.6%, or about 302 points, to 48,114. The tech‑heavy Nasdaq Composite, by contrast, rose around 0.2%–0.23%, snapping a three‑day losing streak and closing 54 points higher at 23,111. Futures trading later showed US stock futures edging lower, with S&P 500 and Nasdaq contracts modestly in the red as markets continued to parse the data and look ahead to further economic releases.
Jobs Report Shows Modest Hiring but Higher Unemployment
The November employment report, delayed by a recent government shutdown, was the focal point for markets. Nonfarm payrolls increased by 64,000, modestly above expectations of around 50,000 and following a steep October decline. However, the unemployment rate rose to 4.6%, the highest level since 2021 and a four‑year high, up from 4.2% in the last available reading. The Bureau of Labor Statistics reported that October payrolls were revised to a loss of 105,000 jobs, with much of that drop tied to a sharp decline in federal government employment. Revisions also left August and September employment a combined 33,000 lower than previously reported. Wage growth cooled, with average hourly earnings up 0.1% month‑on‑month and 3.5% year‑on‑year, the smallest annual increase in about four and a half years. Several reports noted that the labor market has seen little net job growth since April and that the number of people working part‑time while seeking full‑time work has risen.
Retail Sales, PMIs and Oil Underscore Cooling Momentum
Additional data reinforced a picture of a cooling but still functioning economy. October retail sales were flat month‑on‑month, missing expectations for a small gain, though sales excluding autos rose 0.4% and sales excluding autos and gasoline climbed 0.5%. A key “control” group measure rose 0.8%, matching the highest reading of the year and suggesting underlying consumer spending remains resilient once volatile components are stripped out. S&P Global’s flash December manufacturing PMI slipped to 51.8, a five‑month low but still above the 50 threshold that separates expansion from contraction, while the services PMI eased to 52.9. At the same time, a surplus in global crude supply and concerns about slower growth pushed West Texas Intermediate crude below $55 a barrel, its lowest level in roughly four to five years and the tenth straight day under $60. Brent crude also fell below $60. The slide in oil prices helped keep inflation pressures in check but weighed heavily on energy producers.
Sector Moves: Energy Slumps, Big Tech and Tesla Support Nasdaq
Sector performance reflected the cross‑currents in the data. Energy stocks were among the market’s weakest groups as crude hit multi‑year lows. Major producers and service firms including Exxon Mobil, Chevron, Phillips 66, Baker Hughes, APA, Diamondback Energy, Marathon Petroleum, Halliburton, Occidental Petroleum, ConocoPhillips, Valero Energy and Devon Energy all declined, with some names falling more than 4%–6%. In contrast, large technology and growth stocks provided support to the Nasdaq. Tesla rose about 3% to a new all‑time closing high and its first record in roughly a year, helped by optimism around its robotaxi plans. Other “Magnificent Seven” names such as Meta Platforms, Nvidia, Microsoft, Apple and Amazon posted gains or held near flat, while Alphabet edged lower. Outside tech and energy, individual movers included Pfizer and Humana, which fell on outlook updates, and Comcast, which rallied more than 5% on swap‑market activity that commentators said may suggest activist interest.
Fed Outlook and Upcoming Data Keep Policy Path in Focus
The mixed data kept attention firmly on the Federal Reserve’s next steps. The November jobs report and flat headline retail sales were seen as broadly supportive of an eventual easing cycle, and Treasury yields edged lower, with the 10‑year note yield around 4.15%. Market‑based expectations for 2026 policy vary, with some traders betting on at least two rate cuts next year, while separate commentary noted that investors are currently pricing in interest‑rate reductions of more than 50 basis points, above the 25 basis points signaled by the Fed last week. Atlanta Fed President Raphael Bostic struck a hawkish tone, saying he still views price stability as the more pressing risk and expects inflation to remain above 2.5% through 2026. Investors are now awaiting Thursday’s release of November consumer price index data, as well as upcoming readings on weekly jobless claims, existing home sales and consumer sentiment. Fed officials including Christopher Waller and John Williams are also scheduled to speak, events that markets hope will clarify how the central bank interprets the latest labor and inflation signals.
Key Takeaways
- Markets are reacting to a combination of modest job gains, higher unemployment and softer wage growth, which together point to a cooling but not collapsing labor market.
- Falling oil prices are simultaneously easing inflation pressures and driving a sharp sell‑off in energy shares, creating a notable divergence between sectors.
- With data sending mixed signals, the Fed’s communication and upcoming inflation figures are central to how investors recalibrate expectations for the pace of rate cuts in 2026.
References
- 1. https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-futures-wobble-as-wall-street-weighs-jobs-inflation-signals-235109589.html
- 2. https://tradingeconomics.com/united-states/stock-market
- 3. https://www.fool.com/coverage/stock-market-today/2025/12/16/stock-market-today-dec-16-energy-stocks-slide-as-oil-drops-to-multi-year-lows/
- 4. https://seekingalpha.com/news/4532032-wall-street-dow-sp500-nasdaq?feed_item_type=news
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