Market Fluctuations Amid Government Shutdown Threat and Soft Jobs Data
U.S. stock indexes fell as investors reacted to weak private payroll data and concerns over a government shutdown. While healthcare stocks gained, communication services and tech sectors faced losses. The ADP jobs report raised hopes for a rate cut by the Federal Reserve. Nike shares rose on unexpected revenue growth.
The U.S. stock markets experienced declines on Wednesday, driven by soft private payroll numbers and heightened concerns about a potential federal government shutdown's impact on economic data and central bank policy decisions.
Investors have adjusted their expectations, heavily betting on a 25-basis-point rate cut at the Federal Reserve's upcoming meeting after the ADP National Employment Report disclosed a significant drop in private payrolls, marking the largest fall in two-and-a-half years.
In the stock market, healthcare stocks emerged as top performers, with Moderna and Regeneron hitting over 6% gains while communication services and tech sectors, including Meta Platforms and Nvidia, saw declines. Additionally, Nike's shares climbed after reporting unexpected revenue growth.
(With inputs from agencies.)
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