US stocks had a mixed performance on Wednesday, as investors digested a sharp slowdown in private-sector hiring growth and anxiously awaited developments in US-China trade talks. At the same time, the implementation of a steel tariff hike added to concerns, influencing market sentiment.<\/p>\n\n\n\n
The S&P 500 (^GSPC) managed to stay narrowly positive on the day, while the tech-heavy Nasdaq Composite (^IXIC) rose more than 0.3%. On the other hand, the Dow Jones Industrial Average (^DJI) slipped by about 0.2%, breaking a four-day winning streak. The mixed performance reflected the market’s cautious approach amid growing economic uncertainty.<\/p>\n\n\n\n
The 10-year Treasury yield (^TNX) and the 30-year Treasury yield (^TYX) both fell nearly 10 basis points, as weaker-than-expected economic data made waves across the markets. The 10-year yield hovered near 4.36%, its lowest level since May 9, signaling investor concerns about the state of the economy and potential slower growth ahead.<\/p>\n\n\n\n
One of the major economic reports influencing markets was the ADP National Employment Report, which revealed that private-sector hiring growth had sharply slowed in May. Private payrolls increased by just 37,000, marking the lowest increase in over two years and falling well below expectations. This has heightened fears about a potential slowdown in the labor market.<\/p>\n\n\n\n
In another sign of economic weakness, the Institute for Supply Management’s Services PMI registered a disappointing 49.9 for May, a decline from the 51.6 in April and below the expected 52. This marks only the fourth time in the past five years that the services sector has entered contraction, adding further concerns to the economic outlook.<\/p>\n\n\n\n
Reacting to the underwhelming economic data, former President Donald Trump lashed out at Federal Reserve Chairman Jerome Powell, urging him to lower interest rates. “He is unbelievable!!!” Trump posted in response to the ADP report, highlighting ongoing tensions surrounding economic policies.<\/p>\n\n\n\n
On the trade front, President Trump\u2019s decision to double tariffs on steel and aluminum imports to 50% went into effect on Wednesday, with the UK being the only exception spared from the hike. This tariff increase marked a significant escalation in the ongoing trade war, heightening global uncertainty.<\/p>\n\n\n\n
Further dampening optimism around a US-China trade deal, President Trump criticized Chinese President Xi, calling him \u201cextremely hard to make a deal with.\u201d The fragile Geneva tariff truce between the two countries seemed to be unraveling, with continued clashes over critical issues such as chip exports, rare earth supplies, Taiwan, and visa policies.<\/p>\n","protected":false},"excerpt":{"rendered":"
US stocks had a mixed performance on Wednesday, as investors digested a sharp slowdown in private-sector hiring growth and anxiously awaited developments in US-China trade talks. At the same time, the implementation of a steel tariff hike added to concerns, influencing market sentiment. S&P 500 and Nasdaq Close Higher, Dow Falls The S&P 500 (^GSPC)<\/p>\n","protected":false},"author":5,"featured_media":6576,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[4021,4022,2754,397,613,4024,4023,4020,673,4018,4019],"class_list":{"0":"post-6575","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-adp-employment-report","9":"tag-bond-yields","10":"tag-economic-slowdown","11":"tag-federal-reserve","12":"tag-interest-rates","13":"tag-powell","14":"tag-services-pmi","15":"tag-steel-tariff-hike","16":"tag-trump","17":"tag-us-stocks","18":"tag-us-china-trade-talks"},"_links":{"self":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6575"}],"collection":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6575"}],"version-history":[{"count":1,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6575\/revisions"}],"predecessor-version":[{"id":6577,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/posts\/6575\/revisions\/6577"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=\/wp\/v2\/media\/6576"}],"wp:attachment":[{"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6575"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6575"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/guardianglobe.org\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6575"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}