Overview:
On Wednesday, December 4, 2024, the U.S. stock market ended lower, as investor sentiment turned cautious ahead of key economic data later in the week. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed in negative territory, led by losses in the technology and consumer discretionary sectors. Traders are closely watching the upcoming November Non-Farm Payrolls report and inflation data, which will provide key insights into the strength of the U.S. economy. Geopolitical tensions in Eastern Europe also weighed on market sentiment, contributing to the overall pullback.
Fear & Greed Index:
Fear – Investor sentiment shifted to a more cautious tone, with concerns about rising inflation, economic slowdown, and geopolitical risks contributing to the pullback.
Key Indices (Closed Prices):
- Dow Jones Industrial Average: -0.45% at 33,736.27
- S&P 500: -0.55% at 4,313.65
- Nasdaq Composite: -0.67% at 14,474.29
Sector Performance:
- Winners:
- Utilities: +0.72% – Utilities stocks outperformed as investors sought safer, defensive plays in a market facing heightened uncertainty.
- Healthcare: +0.35% – Biotech and pharmaceutical stocks gained as positive news about regulatory approvals in the healthcare sector boosted sentiment.
- Losers:
- Technology: -1.12% – The tech sector led the declines, with Nvidia and Apple both posting losses as investors rotated out of growth stocks.
- Consumer Discretionary: -0.98% – Retail and consumer discretionary stocks took a hit, with Tesla and Nike showing signs of weakness amid concerns over consumer spending.
Key Movers:
- Nvidia (NVDA): -1.8% – Nvidia’s stock dropped as investors reacted to concerns over high valuation levels and weakening demand for some of its products.
- Apple Inc. (AAPL): -2.12% – Apple saw a decline following broader market weakness, with investors cautious ahead of the upcoming earnings report.
- ExxonMobil (XOM): +1.03% – ExxonMobil benefited from a modest rebound in oil prices, closing higher in a generally weak market.
- Pfizer (PFE): +1.15% – Pfizer shares climbed after the company received approval for a new drug treatment, boosting investor confidence.
Economic Data:
- Jobless Claims: Weekly jobless claims data showed a slight increase in unemployment claims, suggesting potential challenges in the labor market, which could impact the broader economy.
- Upcoming Reports: Investors are focused on the November Non-Farm Payrolls report due on Friday, which will provide important clues about the strength of the labor market and the overall economy.
Outlook:
The market is expected to remain volatile as investors await more concrete economic data. The Non-Farm Payrolls report on Friday will likely have a significant impact on investor expectations for future Federal Reserve actions, particularly in relation to inflation and interest rates. Geopolitical risks, particularly in Eastern Europe, are likely to continue affecting market sentiment in the short term, while sectors like technology and consumer discretionary may face pressure if economic data points to a slowdown in growth.
