Wall Street, NY Stock Market closes with mixed results over US economy

The New York Stock Exchange closed on with mixed results on Wednesday, reflecting a market concerned about the state of the U.S. economy but hesitant to make moves before the release of a key employment report.

The session ended with the Dow Jones index rising 0.09%, while the tech-heavy Nasdaq dropped 0.30%, and the broad S&P 500 slipped by 0.16%.

As seen on Tuesday, when Wall Street experienced a sudden downturn, “investors are worried about an economic slowdown,” noted Jack Ablin from Cresset Capital.

This concern was heightened by a Department of Labor report showing that job openings in July fell to their lowest point since January 2021.

Layoffs, on the other hand, increased by 13%, marking the highest level since March 2023.

Investors adjusted their monetary policy expectations, now estimating a 45% chance of a half-point rate cut after the next Federal Reserve (Fed) meeting in mid-September.

Bond yields quickly reacted, with the 10-year U.S. Treasury note yield dropping to 3.76%, down from 3.83% the previous day.

The worsening economic outlook negatively affected cyclical stocks, which are tied to the health of the economy. This included companies like Caterpillar, down 1.03%, and Nike, which fell 0.37%. Declining oil prices also hit major energy companies, with ExxonMobil losing 1.22% and Chevron dropping 1.79%. 

“There isn’t much conviction among investors,” explained Jack Ablin. “We’re preparing for the employment report on Friday, which is seen as key before the Fed meeting, but there’s no panic,” he added.