Bryan R Smith/Reuters
- US stocks slipped from records on Wednesday as investors digested ADP data that showed US companies added more jobs in June than expected.
- Stocks have rallied to records as fear over tighter monetary policy has dissipated, one stock chief said.
- Oil regained strength and prices rose ahead of an OPEC+ meeting on Thursday.
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US stocks slipped from record highs on Wednesday as investors mulled what better-than-expected jobs data signals about the state of the economic recovery.
The latest ADP Employment report showed the US added 692,000 private payrolls in June, higher than the 600,000 expected. All eyes now point to the Labor Department's non-farm payrolls data for June that will be released on Friday. Some investors worry strong jobs readings may entice the Federal Reserve to turn hawkish sooner than it says it will.
Here's where US indexes stood at the 9:30 a.m. ET open on Wednesday:
- S&P 500: 4,290.38, down 0.03%
- Dow Jones industrial average: 34,271.88, down 0.06% (20.41 points)
- Nasdaq composite: 14,507.01, 0.16%
"In summary, stocks have rallied back to record-high territory as fear over tighter monetary policy recently dissipated," said Craig Johnson, Piper Sandler chief market technician, who sees the S&P 500 at 4.625 by year-end. "Complacency with the transitory inflation outlook has also become more widespread."
"Fundamentals remain supported by the reopening theme along with highly accommodative fiscal and monetary policy. The technical backdrop remains bullish with improving market breadth and momentum," he added.
The yield on the 10 year US Treasury note was largely steady around 1.458%.
Bitcoin slipped 3% to $34,722 as the cryptocurrency struggles to rally higher amid a crackdown in China. The coin is finishing the first half of 2021 up 18%. A new survey shows that some sold bitcoin after Musk tweeted negatively about its energy use. Many were unaware of bitcoin's energy usage until the Tesla CEO tweeted about it.
West Texas Intermediate crude rose 1.26% to $73.80 per barrel. Brent crude, oil's international benchmark, rose 1.02% to $75.52 per barrel.
Gold fell for a third straight day, losing 1.17% to trade at $1,757.47 per ounce. The prospect of the Fed allowing interest rates to rise, which in turn lifts the appeal of the US dollar, and resurgence of Covid-19 cases globally cause investor jitters, Dhwani Mehta, senior analyst at FXStreet said.