The New York stock market ended mixed near the flatline ahead of major economic events. Hiring data was strong, but with the possibility of seasonal distortion raised, the market failed to find a clear direction.
On the 4th (local time) on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 31.96 points, or 0.07%, to 47,850.94. In contrast, the Standard & Poor's (S&P) 500 rose 7.40 points, or 0.11%, to 6,857.12, and the Nasdaq composite added 51.04 points, or 0.22%, to 23,505.14.
Weekly jobless claims released that day surprised the market. According to the U.S. Department of Labor, initial jobless claims for the week ended Nov. 29 came in at 191,000, the lowest since September 2022. That was about 30,000 below market expectations.
However, the market sees a high likelihood that the figure was seasonally distorted by the Thanksgiving holiday. Citigroup said in an investment note, "The drop in jobless claims should not be overinterpreted," and "it will rise again within the next few weeks."
Even in this environment, expectations for Federal Reserve (Fed) rate cuts remained intact. According to CME FedWatch, the market is pricing in an 87% chance of a 25-basis-point cut in December.
With the Fed in its blackout period and a lack of major earnings and economic indicators, the market paused to catch its breath. Tim Holland, chief investment officer (CIO) at Orion, said, "The market is breathing a sigh of relief," adding, "The employment data is not enough to block the Fed's cuts."
By sector, there were no clear moves, with industrials, financials, energy, communication services, and technology edging higher. Among mega-cap tech names, Meta rose 3.43% on news of cuts in its Metaverse institutional sector, and at one point in the session climbed as much as 5.71%. Oracle also gained 3.18% on Wall Street's positive outlook. Salesforce, Inc. rose 3.62% on strong results and an upward revenue outlook.
Nvidia rose 2.16%, while Amazon and Apple fell more than 1%, and Intel, which had surged recently, tumbled 7.45%. Intel had risen on hopes it could take on production of Apple's M-series chips, but appears to have entered a short-term correction.
The Chicago Board Options Exchange Volatility Index (VIX), a gauge of market uncertainty, closed at 15.78, down 0.30 point, or 1.87%, from the previous session.