Wall Street retreated from record territory on Wednesday as investors turned cautious ahead of key US labour data.
Both the Dow Jones Industrial Average and the S&P 500 slipped from all-time highs set a day earlier, after data showed US job openings fell in November and private-sector hiring rose less than expected in December. The softer figures tempered risk appetite, even as a services sector survey pointed to healthier growth at the end of the year.
“The jobs data was not great, but did not trigger changes to perceptions about future Fed rate cuts,” said Steve Sosnick of Interactive Brokers.
“We attempted to follow through from the rallies of the last couple of days, and so far we haven’t been able to.”
The Dow ended the session down 0.9%, while the S&P 500 fell 0.3%. The Nasdaq Composite bucked the broader trend, edging 0.2% higher. Futures markets continue to expect the Federal Reserve to hold rates steady later this month, though analysts said Friday’s non-farm payrolls report would be critical in shaping expectations.
In Europe, markets were mixed. Frankfurt’s DAX surged to a fresh record above 25,000 points, while Paris was flat. London slipped from a record high, weighed down by sharp losses in heavyweight energy stocks after oil prices declined.
Crude extended losses after Trump said Venezuela would hand over millions of barrels to the US. West Texas Intermediate slid 2.0% to US$55.99 a barrel, while Brent fell 1.2% to US$59.96. US Energy Secretary Chris Wright said Washington would control Venezuelan oil sales “indefinitely”. Analysts noted the shipments reduced near-term supply risks but added that ample global supply, following OPEC+ output increases, pointed to softer prices.
Elsewhere, US defence stocks dropped sharply after Trump threatened to cap executive pay and restrict dividends and share buybacks. Lockheed Martin, General Dynamics and RTX each fell more than 2.5%.
Asian markets mostly weakened, with Tokyo and Hong Kong closing lower, while Shanghai edged up slightly. Currency markets saw the dollar firmer against the yen, while the euro and pound eased.
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